Wednesday, January 28, 2009

Valuing Junk

If we establish a bank to buy the toxic assets on the books of many of our financial institutions, who is the Solomon that will establish a value for them? And, equally importantly, will this result in the banks actually lending money?

We have implemented a variant of this with Citibank and BofA. Has this helped our economy?

At some point all we'll be doing is printing money. Maybe my kids will be using $100 billion bills to buy lunch.

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