Okay, This is Unacceptable

I'm watching Dodd run the Senate hearing with Paulson and Bernanke. I had been thinking that what we'd been talking about was Treasury paying the price that reflects a large discount from face value, close to if not exactly the same as the current market values for such assets. Now I understand what Paulson is trying to peddle is that we pay the present value of the future maturity value without a risk premium.

The problem is, when those securities mature, there may be nothing there. And Paulson wants no mechanism like the equity stake to cover that shortfall.

My take on this: Fuck no.