Consumerism Commentary - Latest Comments in Mark Cuban to Government: Show Us How the $700 Billion Will Be Spent

Re: Mark Cuban to Government: Show Us How the $700 Billion Will Be Spent

kitty — Sat, 27 Sep 2008 23:12:23 -0000

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.

Re: Mark Cuban to Government: Show Us How the $700 Billion Will Be Spent

Harold — Tue, 23 Sep 2008 20:35:28 -0000

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.

Re: Mark Cuban to Government: Show Us How the $700 Billion Will Be Spent

David — Tue, 23 Sep 2008 14:53:13 -0000

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. ;-)

Re: Mark Cuban to Government: Show Us How the $700 Billion Will Be Spent

Mr. ToughMoneyLove — Tue, 23 Sep 2008 11:08:00 -0000

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.

Re: Mark Cuban to Government: Show Us How the $700 Billion Will Be Spent

Todd — Tue, 23 Sep 2008 09:16:58 -0000

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!