Bernanke wants government to pay significant premium over current "firesale" price for troubled assets. Specifically, he wants to pay close to the "hold-to-maturity" price, which he argues is much higher than the mark-to-market firesale price. Bernanke and Paulson believes this is necessary to get banks to participate.
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What Really Happened: US Treasury Bailout Auction Scam and How To Stop It
By mememan - Posted on September 24th, 2008
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