Hey, Hank, What’d You Do With The $700B We Already Gave You?
About a month ago, you saw the credit markets totally seize up. You were scared to death. There is no one on the face of this planet more knowledgeable than you (the CEO of a successful investment bank) about credit markets, so I was equally scared out of my pants.
OK, you yelled and screamed, and got a ‘bailout’ package of almost $1T. Well now: the credit markets remained frozen for another couple of weeks, and the world did not burst into flames.
Now, the credit markets are thawing and beginning to resemble normal activity. Funny thing: not a single $ has flowed out into the coffers of whoever. Many people and institutions have taken drastic steps, and these seemed to have worked at least a little, w/o a single $ of your Godzilla rescue package. Now you tell us that your purse will not be used to buy assets based on troubled mortgages and take ‘em off the balance sheets. Are you that impotent, that you cannot force ‘em to liquidate these shake ‘n bake assets for 25 cents on the dollar?
Question: Hank, c’mon, do you really know what you are doing?