Is the RTC II just a big bankruptcy avoidance fund?

Discussion in 'Economics' started by Daal, Sep 20, 2008.

  1. Daal

    Daal

    It seems that they just set this up to avoid Lehman Brothers situations. if this fund existed they would have bought the commercial real estate assets and enabled a merger.
    The fed must have pushed this because BSC type bailouts affect their ability to exercise monetary policy, then they let lehman fail and saw all the consequences and they must have realized they didnt wanted to do that again
    So perhaps the stock market shouldn't be too happy about this, chances are if your financial stock uses their money you will have the treasury as a shareholder as well and you must be headed to the pink sheets