Geithner's Toxic Asset Plan

jackyking

HTers 说说到底是好事情还是坏事情？ 乍一看对financial market and overal economy是good news and positive. 仔细看看细节，有可能是set for failure的新game.

"Leaked" detailed plan can be found here, http://www.nytimes.com/2009/03/2 ... d=1&_r=1&hp

In short, under this plan, private investors would be contributing as little as 3 percent for the toxic asset banks put up for auction, and the government would be contributing as much as 97 percent. (85% covered by FDIC, in the remaining 15%, 20% by private investor and 80% by Treasury), and they still call this a "partnership"?

How many private investors will buy into this? What if banks set up high prices for those toxic assets put into auctions and nobody wants to bid/buy? The plan claims private investors would keep the profit from investing under this plan but who bears the loss if there is any? Taxpayers like you and me?

vcvc

没办法，这几个死牲口就是不愿意拉磨，非得把眼睛罩着，再给鼻子前吊一串胡萝卜。。。

Maxie

Governmanet bailout in the disguise of private investments.

小亥

请参照Indymac的损失情况。

xmoustc

4# 小亥


具体说说indymac?

H_T

indymac was bought by a bunch of rich folks (Soros and others) for 40c on the dollar from FDIC.  (or something like that)

jackyking

Banks are too greedy to sell those toxic assets, they keep asking $$ from gov and yet not lowering mortgage so homeowners would have lower chances of default. Let weak banks fail and let us get over with it. With this new plan, IMHO, the government is going to try and sweep under the rug all the current problems, taking on more debt and printing more $$ and creating enormous windfalls for the people that are going to be allowed to participate in it, those same people that have caused the current crisis.

goldman

I don't think this plan will get passed in congress or house in it's current form. 33X leverage, government loss will be huge if someone messes up with the bidding. Taxpayer will not allow put 1T$ at risk in the hands of some HFs that is willing to pay only 30B

jackyking

Agreed. However, how market will react once this is released with full details is totally unpredicatable. I am just worried about when this seemed never stopping printing money and buy-your-own-debt kind of game will stop.

jackyking

Anyone read this?

Timothy Geithner: My Plan for Bad Bank Assets
http://online.wsj.com/article/SB123776536222709061.html

Geithner's plan is out at wsjonline. Check it out yourself.

李隆基

Geithner 简称 该死那

Bencat

good or bad, watch market reaction to this plan!

zidane11064

market will tell everything