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They're non-recourse loans to banks.
We could finance the executive's purchase, but with recourse, not non-recourse, debt.
But Ms. Marcuse testified that Mr. Taubman spoke out against non-recourse loans.
Project financing refers to a type of structured non-recourse or limited recourse financing that has traditionally been used for long-term and large-scale infrastructure projects.
(Helping out with that is an unprecedented $30 billion non-recourse facility to guarantee illiquid Bear Stearns assets, courtesy of the Federal Reserve Bank).
Ezra Klein, similarly, argues that because the plan relies on these "non-recourse" loans, the prices it will produce will be in some way "artificial".
Yet for all the criticism of this subsidy, the truth is that the plan's reliance on non-recourse loans is not an especially radical idea.
Defaulting (even in so-called non-recourse states) is still a lot of trouble, and to most people it's scary.
Lee Sachs was in charge of implementing TALF, which would subsidize the speculative purchase of distressed securities by providing cheap non-recourse loans.
American homeowners are also much more likely to walk away from their debts because many mortgages are "non-recourse", meaning that lenders cannot come after borrowers' other assets.
In a European version, cheap, non-recourse loans would encourage investors to buy Italian or Spanish bonds and bring down yields.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com