The Horse-Trading Has Begun
The Dow dropped about 70 points as Sen. Chris Dodd said Democrats wanted shares (warrants) from companies from whom they would be buying assets.
The Street is asking: if we sell you an asset at a fair market price, why would we give you warrants? Dems will argue, "Wait a minute: if it's such a fair market, why did you need us in the first place? We are facilitating this, and we want something for it."
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There is one important element here: time. Congress is suppose to recess this Friday to go out on the campaign trail; they may stay for a week more, but no one wants to be in Washington in October.