I just took a gander at Mark Cuban’s blog and read his take on the bailout’s future impact on the market.
For all the criticism he gets, Mark is a very smart guy. He is very forward thinking, and discusses the potential impact, as well as the lack of procedure that is occurring right now. This article is a good read and can be found here.
The old saying “do as I say, not as I do” seems to be the SOP for those implementing these policies…. We hear in the media that the mortgage crisis was caused by lenders and brokers who put people into loans they couldn’t repay, or with loose credit guidelines. Sounds like the TARP funds….
To get things back on the right track, we need to find a solution – which will require looking forward, not backwards. TALF comes the closest with the government buying new loans, however it will require them buying new loans underwritten to good standards. We need to make this open to the market, and not only to select parties.
If done right, this will re-introduce competition into the marketplace, and will help all parties involved. Hopefully the people running the program will buy all product types (with a track record of performance) and not ‘politically correct’ products. The last thing we need right now is politically motivated use of these funds, we need everyone working in the best interest of the country right now, there will be plenty of opportunity to take credit later!!!
