What Did Geithner Do Exactly?

[Landis82]

Quote from MrDODGE:

The plan is no different than TARP I except for the private investment idea that WON'T WORK.

Very very vague.
No specifics on how the toxic assets will be "priced".

That having been said, it is in fact different than what was originally proposed in TARP-1.

There is no plan for a "reverse" Dutch auction as Paulson had originally proposed.

Geithner over-promised with the AGGREGATOR BANK (leaked last Thursday) and under-delivered.

Down we go.

 

[FortuneTeller]

Quote from moarla:

sorry to say, but what ever you will do in the States, you are fucked up for the next 10 years )))

And the rest of the world will follow us down the toilet.

 

[tradersboredom]

the bad assets?

those assets are illiquid. there are no investors or the return on those assets are not enough.

Quote from Angrycat:

You're right, Geithner is even worse. At least Paulson paid his taxes.

They won't be able to fob off these bad assets on private investors. Tax payers will be on the hook.

To recapitalize banks, you can't sell $1 in bank assets for a $1 because that just means that the banks are shedding capital. The only way to recapitalize the banks using TARP is to overpay for the assets. To encourage this overpayment, the government is going to provide a guarantee and guess who pays for that guarantee......

So, "hope" & "change" = more of the same, hoping for a different result.

 

[Trvlwanderer]

Quote from FortuneTeller:

And the rest of the world will follow us down the toilet.

\

Don't worry, the world as a whole will scream for a "messiah" once the conditions are bad enough....

....and history shows he will be delivered.....

....a shovel for everyone.

 

[Mvic]

They just don't get it. Credit is not flowing for a very good reason, not because there isn't a market for securitized products, but because the securitized products are toxic (which is why there is no market for them). They are toxic because there is a massive default overhang that will hit if job losses are not stemmed. The stimulus will not stop the job losses and it will create very few new jobs and very expensive ones at that.

This is a disaster because what G is proposing is that the US tax payer be the bag holder, the one who bids for everything that no one wants. Credit will still not flow because the default overhang will still taint everything even new loans unless they are very strict in which case no one will qualify anyway. So the taxpayer will be stuck holding assets that will be rapidly diminishing in value and here's the kicker, we borrowed the money to buy this steam pile of shit and will be paying interest on it!

A targeted jobs creation program would have cured much of this without the need for a trillion bank bailout(again this will not be the cap, we will be having stimulus 2 before the end of a year and another trillion will be seconded to this bailout program).

Perhaps they are hoping that in the short term lending standards will be relaxed if TALF buy anything, any crap that is offered up? In which case we will see an uptick, by my goodness at what a steep cost and as soon as the TALF is pulled (as it will be in the public can actually see the crap they are buying on thier web site) we fall off a cliff again.

 

[tradersboredom]

tarp is buying assets because nobody in the market no entity has that kind of cash to buy it for that long term for such low returns or no returns.

Quote from Angrycat:

You're right, Geithner is even worse. At least Paulson paid his taxes.

They won't be able to fob off these bad assets on private investors. Tax payers will be on the hook.

To recapitalize banks, you can't sell $1 in bank assets for a $1 because that just means that the banks are shedding capital. The only way to recapitalize the banks using TARP is to overpay for the assets. To encourage this overpayment, the government is going to provide a guarantee and guess who pays for that guarantee......

So, "hope" & "change" = more of the same, hoping for a different result.

 

[jficquette]

Quote from MrDODGE:

Couldn't they have announced this plan weeks ago?

No wonder the market is disappointed. The plan is no different than TARP I except for the private investment idea that WON'T WORK. They are trying to pass off all the risk to private investors. So much for a comprehensive financial bailout plan.

Geithner is even worse than Paulson. We are f**ked as a country.

This is not about the system. Its all about implementing their Marxist agenda.

They are using the economy to scare people into supporting a Trillion dollar implementation of Nationalized Health Care, redistribution of wealth.

 

[AMT4SWA]

Get everybody LONG and WRONG, then stick them with the TARP II PRONG!!!

"Globalist (wealth transfer) Games 2009.......Geithner Style!!!"

 

[MAESTRO]

United Soviet Socialistic States of America (USSSA) Welcome to the communism!

 

[tradersboredom]

if free markets were to takes it's course you'll be seeing riots revolution 25% unemployment and you see communism.

banks failing etc. markets are corrupt anysways.

Quote from jficquette:

This is not about the system. Its all about implementing their Marxist agenda.

They are using the economy to scare people into supporting a Trillion dollar implementation of Nationalized Health Care, redistribution of wealth.