President Bush stood in the center of a circle in the Oval Office, Friday, with his economic team flanked around him. He gave them a pep talk after completion on a new policy they believe will fix the nations ailing financial picture. The President, moments later told the nation we are at a “pivotal” time. Bush says government intervention is essential. He made it clear the worsening economy is spreading to sectors beyond housing.
The White House contends it can get to the root cause of America’s worst financial slump since the depression by purchasing illiquid assets. The cost 100’s of billions of dollars.
The White House definition of an illiquid asset, is a mortgage asset, a mortgage-backed security that’s probably lost value as the values of the homes that are underlying those mortgages have declined.
What say you?