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So much depends on Larry Ausubel.

NPR

 

Larry Ausubel (above) and Peter Cramton at the University of Maryland have laid out a detailed plan for how the government might go about buying up hundreds of billions of dollars worth of those toxic mortgage backed securities no one wants with something called a "reverse auction."

They're two of the world's experts. And they've been talking with people in the government.

I went by to see them yesterday.

"This would be the largest auction ever," said Cramton. "That anybody has been involved with on the planet earth."

There are lots of tricks to making sure the auction gets you a fair price, and can't be gamed by some clever wall street guys.

"Whether you do this program well, or whether you execute this program badly, could effect the number of zeros at the end of the taxpayer's loss," Ausbel told me.

You can hear the full story on Morning Edition. Or you can try to read their paper. (A little less fun.)


categories: Understanding The Crisis

1:35 - October 9, 2008

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