Tim Rocks of Macquarie Says U.S. Toxic Asset Plan Will `Fail Abysmally'

Treasury will partner with you 1:1

Then, FDIC will give you a non-recourse loan at 6:1 leverage.

Imply you only need to bat for 1 every 7 loan for you to break even if you bought those loan @50% face value. The taxpayer eat the other 5 out of 7 bad loan.

What now? Still not good enough odd? How about non-recourse loan at 12 :1 then? You only need to bat 1 out of 13 now.

You see. They can always stick it to the taxpayer.

So, this plan is a disguise of taxpayer over paying for toxic loan and I bet this will work, or they will tweak it until it works.
 
Some of us called this rally 1000 pts ago. Where was Tim Rock? And when was the last time some Ozzie Bank/trader led the way on anything?

All Respect BiHi


Quote from ByLoSellHi:

Rocks Says U.S. Toxic Asset Plan Will `Fail Abysmally' March 26 (Bloomberg) -- Tim Rocks, equity strategist at Macquarie Group Ltd., talks with Bloomberg's Bernard Lo about the U.S. government's planned public-private investment partnership to buy illiquid securities clogging financial companies' balance sheets.

http://www.bloomberg.com/avp/avp.ht...//media2.bloomberg.com/cache/vZC8MN6a.2w4.asf
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