Monday, March 23, 2009

A MISLEADING HEADLINE AND A PUZZLE

According to this Memeorandum listing, the WaPo had this article:

Neil Irwin / Washington Post:Treasury: Toxic Asset Prices to Be Determined by Auction
Discussion: MoJo Blog Posts and Democracy in America

Ezra Klein dug into the Treasury's fact sheet and discovered that this plan is not completely market-based because the FDIC will make the initial determination about how much money it is willing to lend for the purchase of toxic assets:

The second point, as Foreign Policy's Annie Lowrey pointed out to me, comes when the government decides how much leverage to offer private investors. To quote from the fact sheet, "To start the process, banks will decide which assets – usually a pool of loans – they would like to sell. The FDIC will conduct an analysis to determine the amount of funding it is willing to guarantee."

The puzzle is that this article has disappeared from the WaPo web site. It is on the DELMARVANOW.COM site, apparently the online home for news in Salisbury, Maryland:

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