I’m all for taking action to add liquidity to markets that seize up – not to mention rescuing venerable financial firms if that’s the best way to keep the economy from going utterly in the tank for the rest of us.
But I’d like to offer an amendment, adding to the tweaks coming from Congress: How about a proviso that members of the Senate and House … as well as occupants of the White House, SEC and Federal Reserve chairmen, past or present … draw their pay or pensions in the form of mortgage-backed securities for the next few years ?
This might give the officials in Washington some incentive to deliver on that wishful thought, voiced by some, that taxpayers actually could come out ahead – rather than losing $700 billion – in the Treasury Department’s proposed big investment in illiquid assets.
(OK, this has nothing to do with investor relations. Good luck to all.)