CNNMoney.com describes the planned $700 billion bailout as follows:
The plan would allow the Treasury to buy up troubled assets from U.S.-based companies and foreign firms with big U.S. operations. The aim is for the government to buy the securities at a discount, hold onto them, and then sell them for a profit.
Here’s the question: if these troubled assets are so cheap, why doesn’t anyone else besides the U.S. government want to buy them?
There are plenty of hedge funds out there with ample cash. Perhaps, if the assets are such a good deal, some European governments will want to get in on the bargain also, rather than let the U.S. Treasury get all the spoils.