Jim Chanos On Frozen Markets

Top flight short-seller Jim Chanos emails Joe Nocera with some observations on the frozen markets that Treasury Secretary Paulson is so concerned about:

[T]he only reason these markets are illiquid is because THE CURRENT MARKS DON’T REFLECT REALITY! There are plenty of buyers (including me)for "distressed assets,” at the right price. We may reasonably argue if a certain C.D.O.[collateralized debt obligation] is worth 25 or 30 cents on the dollar, but I have no interest when the bank showing me the same paper at 60, could “do the deal” at 55…! The illiquidity is due to the continued overpricing of this paper, not the paper itself.