Will a Secondary Market Develop?

One question I have about the Geithner Plan—or more specifically, an outgrowth of the plan—is will a secondary market for these toxic assets develop?
There’s been lots of talk of how individual investors can jump on board, and that’s fine. But what happens once Pimco suddenly wants to start ditching these assets? There’s a saying that in a bear market, if you can’t sell what you want, sell what you can. Could we suddenly see these assets flood the Street?
Hey, what if banks start buying them back? Stranger things have happened. AT&T was broken up only to see the Baby Bells buy each other.
As an investor, I would strongly be disinclined to take part in an auction. But I would like to see how some assets start trading. I just don’t know what will happen.

Posted by on March 25th, 2009 at 11:07 am


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