Wednesday, September 24, 2008

Chairman Bernancke said losses should be some percentage of the plan but how much, you can't say because it will depend on what exactly is done with the mortages on which is based the so called "toxic assets" (the commercial paper). So far the plan is to buy the commercial paper, once done, how much is worth that commercial paper the taxpayer is bying depends on what will be done about the management of the mortgages because I think the very initial fault has been the lack of care in the management of these contracts. You start to manage in a more traditional way one by one these loans and you can change drastically the value of the commercial paper the taxpaper has bought.

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