Reverse auction proposed
Posted by Sada Mosler on September 20th, 2008
Under this proposal from treasury, they would ask for offerings from the banks and then take the lowest prices for up to $50 billion at a time.
This means they will be paying more and more for each round of purchases, driving up the prices from current market value.
And if the plan is to spend the entire $700 billion they could drive prices up through the roof.
They would need to limit the prices they are willing to pay somehow.
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