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Well, MrBob, since you brought up the NYT...you might want to peruse the paper a bit more. Say, the editorial page.
The always supportive, unabashed liberal Paul Krugman has done the unthinkable (gasp!)...and soundly criticized this recycled toxic asset plan.
As far as no live coverage of the "unveiling"..after Geithner's disastrous stage debut in Feb, I suspect he'll be kept out of the spotlight as much as possible.
I've been reading Krugman regularly in the NYT thanks...
Yes, he has been hard on Obama - for doing too little - and he thinks that to deal with the banks - the Treasury has to take over some big ones that are insolvent - and if necessary, orderly shut them down...
I can see his point.. But the same people who are vehemently arguing against that (especially on this forum) as 'socialism' - are now also complaining about this alternative - a No Win situation they are trying to sell...
Anyhow, Krugman MAY be right - maybe... and if he is, in the future some banks may need to be temporarily nationalized.
I personally think this Obama plan should be implemented and see how it's doing in 6 months. If the financial sector is still locked, then go ahead and nationalize problem banks...
Are we expecting China to buy up these toxic assets?
According to Forbes.com: "...the Treasury will provide matching funds to private investors who wish to purchase the banks' bad assets. With this combination of private and public money, the investors will borrow yet more money from the government, likely through the support of the Federal Reserve and the FDIC." Geithner's Bank Plan: Winners And Losers - Forbes.com
According to Forbes.com: "...the Treasury will provide matching funds to private investors who wish to purchase the banks' bad assets. With this combination of private and public money, the investors will borrow yet more money from the government, likely through the support of the Federal Reserve and the FDIC." Geithner's Bank Plan: Winners And Losers - Forbes.com
Right. And after watching the witch hunt on Libby and the administration entertaining the idea of telling people how much they can make, I'm sure those private investors will be standing in line to do business with the mafia, I mean government.
Right. And after watching the witch hunt on Libby and the administration entertaining the idea of telling people how much they can make, I'm sure those private investors will be standing in line to do business with the mafia, I mean government.
Absolutely they will.
"Monday's massive rally represents the fifth-largest point gain in the history of the Dow. However, from a percentage basis the rally ranks as the 20th best one-day rally in the index's history."
"'There is a shift in tone and temperament in the market that speaks to confidence in the plan being proposed by Geithner to price and dispose of toxic assets,' said Peter Kenny, managing director at Knight Capital Group. Pointing to a six-day win streak in Asia and another big rally in Europe, Kenny said the foreign markets have been 'voting unequivocally yes' on this plan."
Success of this depends on companies picking up the slack in buying up the toxic assets. Let's see how THAT works out.
Sincerely,
Mrs. Gary Beach (well, or not)
What he is really doing is relying on the free market to price those toxic assets as many have said long ago.This plan as well as others has been talked about since like December.The devils is in getting it done at a low cost to the txa payers.Remember what the original TARP money was for? It really depends on the private sector as staed all along valuiong thoise assets ;not the treasury.Its really a admission by the feds that they don't have the expertise to value the assets and only the free market does IMO.Thsi si what many have said for along time while many wanted the feds to buy them and hold them for so called profit later.
Are we expecting China to buy up these toxic assets?
Apparently China has no qualms about buying more US debt - not that we're counting on China buying up the "toxic assets". There will be plenty of buyers for those right here in the US.
"...the uproar over AIG has scared potential private investors from any involvement in a government-run program. "AIG makes everything worse," says the senior administration official. Private investors fear that an angry Congress might place restrictions on pay packages for anyone who participates, Treasury, Federal Reserve officials and industry officials say. In fact, the Federal Reserve had to reassure private investors that they would not be vulnerable to such a backlash when it unveiled a similar government program this week. But that program also had trouble getting off the ground. The Term Asset-Backed Securities Lending Facility, which is designed to spur trading in securitized consumer loans, has gotten off to a slow start, attracting only a handful of applications during the two-day window for participation this week. The total size of the deals fell well-short of the $200 billion the Federal Reserve initially made available for the program, let alone the $1 trillion to which the Fed eventually raised the ceiling." Plan to Buy Toxic Bank Assets Delayed Again - TIME
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