TARP bailout: $700 billion
Value of all delinquent loans in US: $500 billion
How is the $700 billion going to be invested? Why not just buy all the delinquent loans, or better yet, socialize all the banks? At least that model involves an understandable purchase of *equity*. The main problem with the current plan is that how the money will be "invested" is not clear.
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