Friday, December 18, 2009, 1:37AM ET - U.S. Markets open in 7 hours and 53 minutes.
The plan is extremely complex (intentionally so says Clusterstock's John Carney) and its success or failure, hinges upon multiple variables. Most critically: What price are investors willing to pay for toxic assets and what price banks are willing to sell them for - most likely at a loss?
Before we get into the nitty-gritty, consider the following quotes, from two highly respected sources:
In a nutshell, Gross' view represents that of the institutional money management community and Wall Street generally. The plan is very good for them because it calls for the government to provide most of the capital and shoulder any future downside risk. After putting up a relatively small amount of capital, institutions like Pimco, BlackRock, Legg Mason, Invesco and others of that ilk would have the opportunity to participate in 50% of future upside, should it occur. That, in turn, might entice them to pay above-market rates for the assets, which is very good for the banks.
But it's hard to imagine any transaction where "everybody" wins - banks, investors and taxpayers alike. The bottom line is Geithner's plan represents a massive shift of risk away from Wall Street and onto the back of the American taxpayer.
More of the same, in other words.
NEVER IN THE COURSE OF HISTORY HAVE SO MANY, GIVEN SO MUCH; TO SO FEW......................................................................
Why don't we just let all the people who wanted this "change" start paying for it?
The taxpayer gets stuck again. Anyone backing this waste of more taxpayer money has got to be an idiot.
BULLSHIT SUMS IT UP! SHORT & SWEET! All you GENIUSES that say AIG can't fail either are Wall Street snakes or you slept through Economics 101. Like idiots BUSH & CHENEY used fear to promote the fake "war on terror", OBAMA, GEITNER, BERNANKE and their fast talking clown posse are using fear to promote "too big to fail". It is funny how most of all the players involved in this bullshit scam have some ties to GOLDMAN NUT SACKS. This is the biggest shakedown in world history since the Isrealites got screwed into building the pyramids for Egypt. Unbelievable! Thanks to the fine AMERICAN LEGAL SYSTEM, this is the most corrupt P.O.S. country in the world and the USA has taught the rest of the world that it is OK to steal as long as you have an overpaid snake attorney or judge by your side. This country has been poisoned by them. Saigon here I come!
This only benefits big banks and hedge funds with lots of capital to spend. Its a huge win win for those that have money to put into the assets. You only put up a small amount of capital with downside risk. You can't lose if you are the private investor partnering with the government. The loser is the avg. individual. The rich will be rich again. Its a shame banks will benefit also. I wish I could get someone to take toxic assets off my small business books. Oh well. Greed takes over again.
Of course Bill Gross likes it. Pimpco was the first large investment entity to push back and refuse to buy the subprime and HELOC securites. That was a couple of years ago. He knew they were worthless then. Now he can get them, and the financing to buy them, real cheap. That high-yield pimpco bond fund is looking better.
Nabobs of Negativism! Geithner is probably the smartest individual we have had at Treasury in at least 8 years. This is hard for the talking heads (are you smarter than a 5th grader) to fathom. I support those in government who are trying to clean up the Bush mess. If you want to jump on someone, jump on Barney Franks and Chris Dodd and an inept Congress to get finance reform moving.
We are not distracted. FIRE GEITHNER and BERNACKE.
What ever plan that's not good for the public, would not be good for Wall Street either. And for all those suckers out there that called the bottom 2 weeks ago: Thank you! I ride the rally all the way up till last week, and since you guys push it so higher, it create a perfect opportunity for me to short again. Thank you!
Nothing is too good for the american tax payer! campidiot.com
but if you look at closely , what is a taxpayer really, is it anything other than a sucker?
I used to be a "professional" Magician in a prior life: Google "MISDIRECTION", cause that's what this really is!
I used to be a "professional" Magician in a prior life: Google "MISDIRECTION", cause that's what this really is!
http://en.wikipedia.org/wiki/Misdirection
Geithner is f*cking Obama up the ass and he's doing the same to us, the taxpayers. Someone run Geithner out of town because he's the painted whore of Wall Street.
What the heck ever happened to "smart" Finance 101? Can the American taxpayer be so foolishly duped and not SCREAM bloody murder from now until 2010?
Can't believe I'm seeing this, the rich got richer and richer and when it blew up in their face the middle class and poor paid to make sure they stay rich. Unbelievable. The USA is now a joke, first Bush and now this. Obama save us.
If Bill Gross thinks these toxic assets are undervalued and they will be worth much much more in the future to make a win-win-win scenario, why does he needs taxpayers money to do that? Why doesn't he put his own personal money in it instead of our own? If Obama and Geithner think this is a profitable business for taxpayers, let them put their own money, not mine. I can see these sharks' mouths watering. These are the sharks that put us in this mess.
Taxpayer on the hook. Too big to fail. Wait until the world discovers the USA is NOT too big to FAIL ! We as a country will be in big trouble...
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__A_YAHOO_USER__ - Tuesday March 24, 2009 03:58PM EDT
Hate: Gee... there's an imaginative word in this mucked up economy, huh?