Wednesday, September 24, 2008

Bernanke Says U.S. Should Pay Above Market Price for Bad Debt

Bernanke Signals U.S. Should Pay More for Bad Debt

Sept. 23 (Bloomberg) -- Federal Reserve Chairman
Ben S. Bernanke signaled that the government should buy devalued assets at above-market values to make its proposed $700 billion rescue package most effective in combating the financial crisis...

“Psst....hey buddy!  I got a great deal for ya.  My pal is going through some hard times, see.  Gimme some cash now to buy his old junk that nobody wants at any price today and we can flip it for a profit some day.  It’s such a great deal though we gotta pay EXTRA.  And of course you gotta pay the interest on the loan too.  But really, this’ll be a SWEET deal in the long run.  Y’know I wouldn’t lie to ya.  Right?  And besides, if ya don’t do this deal see, SOME REALLY BAD STUFF COULD HAPPEN TO YA.  And we wouldn't want that now, would we?”

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