After briefly reviewing the Public Private Investment Program White paper that I found on the US Treasury Departments website I was left with more questions than answers. What I found was there is no fine print or "real" details into how this program will work other than the broad ideas of its framework. Here are the following questions I would like some answers too:
- How did they come to assume that the markets will be stable? It appears it is wishful thinking rather than academic analysis.
- How does a repackaging the same Toxic assets to the same current owners solve the problem? It’s a attempt at a free lunch that I believe no one will have a appetite for because the current owners know they have no value and unless the government gives them zero liability to hold them it will fail.
