Marta Mossburg discusses the possibility of a bailout for investors:
In the name of creating jobs, large investors stuck with billions in a certain type of illiquid security known as student loan auction rate securities are lobbying the federal government to cash them out. This could be a $25 billion bailout for wayward banks who sold them worthless goods…
Government action to liquidate these investments would likely increase employment and investment. A paper sponsored by the investors lobbying the government by University of Delaware economics professors James Butkiewicz and William Latham, says that freeing up the $25 billion stuck in SLARS by non-bank holders would boost the economy by up to $63 billion and help to generate as many as 441,000 jobs — almost the number of jobs lost in August and September in the United States.
