I listened to a long NPR opinions session about a new movement from the government to help the economy. The plan is that the government will buy shares in "toxic bonds" (bad mortgages and investments), and then sell them to the public in a manner similar to the liberty bonds from WWII. The idea is that these toxic bonds will recover as the economy gets back on its feet, which it can do with the money investors spend to buy these bonds. Not all bonds will make money, but some certainly will, and the people who own them will make a killing.
As I listened to the debate, in which professionals from both sides of the issue fielded questions and opinions from people who called into the station. The only thing I really understood was that a lot of what determines the safety of these toxic bonds is the price at which their sold. I couldn't help but wonder how many Americans really do understand this thing, and how many are just faking it or ignoring it. What percentage of the population truly understands the economy?
And who comes up with these ideas?
No comments:
Post a Comment