We keep going round and round about “how do you value toxic assets?” meaning that bailing out banks means buying up failed assets worth less than their paper value. This is the “bad bank,” thing you may be hearing a lot about. So, how do we gauge the value of these assets? We know the value has plummeted, but when the entire economy is depressed, the asset is worth even less than it would normally be. What exactly is a fair price?
We’re not talking about one or two, but millions of them. And how do we know that the government’s not going to get ripped off by unscrupulous banks trying to recoup their losses?
Well, how about we take some people who are unemployed and put them to the task of valuing the assets? We should have that process over lickety-split, no shit. And we’d put some people to work in the process.