Originally posted by Malacasta
If it's going to buy the failed mortgages (which might be what? 100 billion?) then what's the rest of the money for?
If the government could sort out and buy only the bad assets then it might cost only the $100 billion, but they can't, which is why the cost is much higher. Unless they really screw it up, it is reasonable to expect that some of the assets bought will be good.