Monday, October 22, 2007

We are so screwed - Greenspan questions 'superfund': "Alan Greenspan on Friday raised doubts over the plan to create a $75bn-plus investment fund to buy the assets of troubled investment vehicles, warning it could prevent the market from establishing true clearing prices for asset-backed securities. The former chairman of the Federal Reserve said the 'super fund' proposal by Citigroup (NYSE:C) , Bank of America (NYSE:BAC) and JPMorgan Chase - with the backing of the US Treasury - could undermine confidence in credit markets. Mr Greenspan told Emerging Markets magazine: 'It is not clear to me that the benefits exceed the risks.'"

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