Argument: $700b plan may result in few losses or actually profit taxpayers
Secretary of the Treasury Henry Paulson - "When you look at the money that is spent to purchase assets that will be held and sold, and the price you will get for those assets will be based upon how the economy does, the pace at which the housing markets recover. But the ultimate cost will be well below what was actually spent for the assets."
Kenneth Lewis, Chairman, CEO and president of Bank of America. "Main Street Needs the Treasury Plan". Wall Street. 26 Sept. 2008 - "The most critical point for the public to understand is that the money being proposed -- $700 billion -- is not going away. It will be used by the government to purchase assets at a negotiated price -- presumably a price based on the fundamental value of the underlying collateral (taking into account the underlying risks). When the markets recover, the government will then resell these assets -- perhaps at a loss, but not necessarily. The American taxpayer could break even on this transaction, or even post a financial gain."
"Bail-out debate: For and against". BBC. 25 Sept. 2008 - Toxic profits: The $700bn cost of mopping up banks' toxic debts may seem a high price, but when authorities eventually sell these assets in the future, their value may have risen enough to make a profit.
Andy Kessler, prominent author and columnist - Paulson could wind up buying more than $2 trillion in notional value loans and home equity and CDOs for his $700 billion. ... My calculations, which assume 50% impairment on subprime loans, suggest it is possible, all in, for this portfolio to generate between $1 trillion and $2.2 trillion -- the greatest trade ever.
"Obama's Remarks on the Economic Crisis". 30 Sept. 2008. Reno, Nevada - if American taxpayers are financing this solution, then you should be treated like investors - you should get every penny of your tax dollars back once this economy recovers.