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The haters will never give Pres. Obama & his administration any credit no matter how successful his policies are. Remember Fat arse Rush and his followers want Obama to fail so I guess today was a rough day for em.
"...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
You realize of course you are quoting from and linking to an article that was published last week - BEFORE the plan details were actually announced (TODAY)????
The plan is structured in such a way that investors face very little risk - in fact, the most valid criticisms of the plan are just the opposite of what you claim. It's the government who is facing taking the risk - not the partner investors.
Fortunately I think the risk for the government is slight. I think at this point much of the so-called toxic assets are undervalued and with most of the risk removed, private investors will rush buy these up.
I think it is a good plan and it will work.
Clearly Wall Street feels the same way (hence the 500 point gain today for the DOW).
Ken
Last edited by LordBalfor; 03-23-2009 at 04:10 PM..
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.
True, but it's not that they dont have the expertise or cant get the expertise; it proves a commitment to recovery by the private sector when the PS begins to buy up without being bribed (overly much ).
The haters will never give Pres. Obama & his administration any credit no matter how successful his policies are.
True. They'll just spin it the way they spin everything...and the poor Rush and Sean herds will go trotting right along behind, bleating and jingling....
The first of many who will rush to buy these investments:
"Investment giant BlackRock was downright enthusiastic about the new program.
The investment management firm is applying to be one of the government-selected managers and is willing to raise $5 billion or so of private money to partner with taxpayer dollars, Curtis Arledge, co-head of US Fixed Income Portfolio Management Group, at BlackRock told ABC News.
"We think many of these assets are trading at prices well below their intrinsic value," Arledge said.
(However, for the time being - their big short fund's manager says, "“The risk is that the economic recovery disappoints in the second half and that equity markets need to revisit their lows in the next few months and maybe go through them.”)
You realize of course you are quoting from and linking to an article that was published last week - BEFORE the plan details were actually announced (TODAY)????
Yes, last Thursday - sooo... long ago.
Quote:
The plan is structured in such a way that investors face very little risk - in fact, the most valid criticisms of the plan are just the opposite of what you claim. It's the government who is facing taking the risk - not the partner investors.
Risk isn't the only thing private investors are worried about. After the AIG bonus debacle, they also fear that an angry Congress might place restrictions on pay packages for anyone who participates in the toxic asset bank plan - notice the less than enthusiastic response to the Term Asset-Backed Securities Lending Facility program. Who's going to want to take any risk if the potential for retaining any profit is placed in doubt by Congress?
Quote:
I think it is a good plan and it will work.
Clearly Wall Street feels the same way (hence the 500 point gain today for the DOW).
Well, sure, bad assets are going to be taken off of banks' balance sheets. So, bank and financial stocks get a major bounce.
The downside: taxpayers will realize gains -- alongside those 'evil' investors such as hedge funds and private-equity firms -- only if their investments in the toxic assets prove profitable. Krugman doesn't think it will work. http://www.nytimes.com/2009/03/23/op...=1&ref=opinion
Why would bank and financial stocks bounce on Geithner's toxic assets bank plan news? They know they can game the system to make the taxpayers eat the loss. Denninger describes how, here: Open Letter To The FDIC Ombudsman - The Market Ticker
The market was up almost 7% today!!! Isn't that just fantastic!!!
This will actually eat the Obama-haters up alive!!! That is so GREAT!!!! After their non-stop, ad-nauseum vile that they've been subjecting us to for the past several months - I say TOUGH!!!!
The one thing that will really upset the Obama Haters is GOOD NEWS ABOUT THE ECONOMY!!! They'll be jumping off building tops pretty soon!!!
After getting their hopes up about Obama failing for the past few months - this must really be a huge setback to them!!! I can feel their pain!!!
The Dow was up almost 500 points, the Nasdaq almost 100, and the S&P up 55... That's almost a 7% increase for all of the indices!!!
For all you who think I am gloating - YOU ARE ABSOLULTELY RIGHT!!!
After the crap that certain people on this forum have been posting for the past 3 months - YES - I AM GLOATING - I AM INDUSTRIAL STRENGTH GLOATING!!!!
The market was up almost 7% today!!! Isn't that just fantastic!!!
This will actually eat the Obama-haters up alive!!! That is so GREAT!!!! After their non-stop, ad-nauseum vile that they've been subjecting us to for the past several months - I say TOUGH!!!!
The one thing that will really upset the Obama Haters is GOOD NEWS ABOUT THE ECONOMY!!! They'll be jumping off building tops pretty soon!!!
After getting their hopes up about Obama failing for the past few months - this must really be a huge setback to them!!! I can feel their pain!!!
The Dow was up almost 500 points, the Nasdaq almost 100, and the S&P up 55... That's almost a 7% increase for all of the indices!!!
For all you who think I am gloating - YOU ARE ABSOLULTELY RIGHT!!!
After the crap that certain people on this forum have been posting for the past 3 months - YES - I AM GLOATING - I AM INDUSTRIAL STRENGTH GLOATING!!!!
You seem to be unaware that you're being duped, unless you're among the many who don't actually pay taxes.
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I can feel their pain!!!
