Friday, October 26, 2007

Snow on MLEC

by Tanta on 10/26/2007 12:00:00 PM

While we're on the subject of "price discovery," it appears that former Treasury Secretary Snow isn't impressed by Sivvie Mac ("The Knife"):

WASHINGTON, Oct 26 (Reuters) - Former U.S. Treasury Secretary John Snow on Friday said a proposed multibillion-dollar fund assembled by top banks to prevent a fire sale of shaky debts may cause problems by delaying inevitable losses.

"We've got all this paper out in the system, and my inclination is to say, let's accelerate the price discovery process on this paper," Snow said on CNBC Television.

"We know that when you prop things up artificially -- Japan -- we know when you prop things up artificially -- the (savings and loans) in the United States -- you get bigger adverse consequences," said Snow, the immediate predecessor of current Treasury Secretary Henry Paulson.

Snow, now chairman of private equity firm Cerberus Capital Management, said he has not discussed the fund with Paulson.
Is anyone else enjoying the spectacle of Snow sounding smarter than Paulson?