DISQUS

Todd · 1 year ago

Mark is full of good ideas. I really like this approach as well. Shoot for full transparency and open market. Let the open market (independent buyers) drive the prices. great idea!

Mr. ToughMoneyLove · 1 year ago

I am not a big fan of Mark Cuban and his antics but in this case he is spot on. Transparency is key, particularly now that we have the FAS 150 "mark to market" rule.

David · 1 year ago

How about we let Cuban invest it in a sports team? Will be worth more in a few years than this mess will, and I don't mind my tax money going towards sports instead of failed companies. ;-)

Harold · 1 year ago

The government is going to pay more for the assets than what the market will be willing to pay. According to Paulson, these assets will come from many different companies both american and foreign. What the government seems to be doing is creating a market for these assets.

kitty · 1 year ago

Harold, this is true, but these assets may be undervalued now - as everything on the market is.

At least according to some analysts I heard - and obviously it's just an opinion - these assets are valued as if 50-60% of loans will fail and there'll be no recovery. In reality, only about 25% of subprime loans fail, and when the house is sold, it's usually for more than $0.

Having said that - while I believe the bailout is necessary, I do think Mark's ideas are excellent.