We're losing technology and know-how that we will never get back with each liquidation. These companies need fresh capital to come directly to them, and every time you add a layer, it's a further hindrance to accomplishing the goal of credit to industry.
Do you think this plan will be revised again? Some of the language is a bit squishy, and seems like the administration gave itself some breathing room to adjust if necessary.
If they have to drag investors and banks to the table and it's not working, then they'll have to keep adjusting. It took me the better part of a year to get my structure to work and get one to which all parties would ante up. I don't understand why I haven't gotten a call from Treasury, since I have a patent for the technology to value these assets.
Have you spoken to people in the Treasury Department?I've reached out and talked to some people at Treasury. I haven't talked to [Treasury Secretary Tim] Geithner. But I guess they felt they didn't need my guidance and they already had the right structure in place. What do you see happening with this plan over the next few months? I don't think this will get done [until] at best the third quarter of 2009. By the time this cash gets to banks' balance sheets, how many additional jobs will be lost? How many firms will go under? The front line to recovery needs to be direct lending to the industry, fast. A straw man is a straw man until deals are getting done. And even when deals are getting done, and we don't know whether a structure is valid until all the winners and losers are known. I could be wrong that the structure is significantly flawed-- the rest of the world seems to embrace it. I don't know what I see that others don't. Maybe I'm drinking different water.
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