"The Plan"

A deal has reportedly been struck on what is being billed as the Emergency Stabilization Act of 2008. The problem is that it has yet to be voted on; moreover, there are other reports suggesting it doesn't necessarily have overwhelming backing from rank-and-file members in Congress, meaning the passage of the deal isn't exactly a done deal.

The structure of the proposed deal is another point of interest.

Among other things, it is said to include limits on executive compensation, foreclosure relief, stronger oversight, the establishment of a guaranty program, a plan to disburse $700 billion for the purchase of troubled assets in tranches, and the capability for Treasury to receive warrants that give it the right to acquire stock in companies benefiting from the purchases.

In brief, there were provisions agreed to that satisfied the wishes of the Republican and Democratic leadership in Congress. There are just enough add-ons, though, that make one question whether the financial firms themselves will see the plan as enough of an incentive to sell their distressed assets.

Remember, the aim of the administration's original plan was to provide the incentive to opt in. Setting limits on compensation and acquiring the right to take equity stakes in participating companies are populist measures that may be just enough of a disincentive to participate, meaning the credit market might not be easily unclogged in the initial phase of things.

dont think so, but it is a game of chicken. not that it is time to play games. let em say no, then we can just nationalize them.