Tuesday, March 25, 2008

A Bear Stearns Bailout

I thought it was fine when the Fed agreed to back Bear Stearns' obligations in exchange for a near liquidation of the company ($2 per share was close enough). But it now continues to back Bear's liabilities, and shareholders will get quintuple the price. To me, this amounts to a transfer from the US government (i.e., taxpayers) to Bear Stearn shareholders.

I have written in the past of my reluctance to award haircuts to homeowners in trouble, but I find such policies far preferable to taxpayer transfers to Investment Bank executives.

1 comment:

davelindahl said...

David lindahl Scam report that the, Tax Lien or Tax Deed? This query occurs a lot among traders eager in Tax crime real estate investment. What's the distinction between Tax liens and Tax actions and which is better to get in? The response to that query is this, which are you looking to do, earn cash on your money? Or own real estate asset with your cash / investment? If you just want to get the interest amount and charges on your investment then Tax Liens is the best choice. Now if you don't thoughts being a homeowner and sometimes just getting your amount with interest and charges then Tax Deed qualities would be more appropriate for you.