Paragraphs to ponder

Via Mark Thoma, Susan Woodward has an idea:

The true values of mortgage assets are generally thought to be a mystery. But
little-mentioned among discussions … of the crisis is that the Treasury has
access to the best resources in the business for estimating the hold-to-maturity
values of mortgages and mortgage-backed securities. This team is at Fannie Mae,
which the government now effectively directs.

You might laugh, or cry, but the reality is that most proposed paths out of the crisis involve a circularity problem.  And, courtesy of Chris Masse, here is another paragraph to ponder:

Krugman’s award could bring Bush face-to-face with his
antagonist. The president typically invites Nobel Prize winners
to the White House in November or December.    


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