There has already been announcement of assest buys of various investment banks. The market is privately making the buys on these mortgage backed assets. If the government does in come in later in the game the assets left to be bought are probably the ones that carry a higher risk that no one else wants to buy.
So not only will tax payer dollars buy junk assets, potentially at higher prices, but junke assets that are likely to carry no value in the future.
On the flip side, I expect less of the junk assets waiting to be bought by the government. Will the price tag reflcect some of these changes? Would it go down to 500 billion?
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