Private Sector Boosts Asset Values, Not Government
L. William Seidman & David C. Cooke | September 25, 2008
In the late 80's and early 90's the government-owned Resolution Trust Corporation (RTC) was charged with overseeing $400 billion in assets, most from failed banks and loan institutions. ++ The lessons learned then are applicable now. ++ Assets require active management to increase value, which the government cannot provide. ++ Holding large amounts of assets will depress prices due to a looming asset "overhang." ++ To jumpstart the market, assets must be sold at low prices. ++ Assets should be moved into the private sector.
Tags: | financial crisis |
assets |
Paulson |
RTC |
FDIC |
Seidman |
Cooke |
failed banks |
Resolution Trust Corporatoin |
