Deja vu
Posted on 02/10/2009 11:06:45 AM PST by Syncro
Treasury Secretary Timothy Geithner on Feb. 10 laid out details of the Obama Administration's revised bank rescue plan. It includes a program to purchase up to $500 billion in toxic assets on bank balance sheets and up to $1 trillion to support consumer and small business lending. he promised to impose "higher standards for transparency and accountability." The government has about $350 billion left in the TARP to be deployed.
The stock market, which had been awaiting Geithner's speech and expected passage of a new stimulus plan by the Senate today, sold off after the speech. The Dow Jones industrial average was down about 3% in early-afternoon trading.
• The government, through the FDIC and the Federal Reserve, in partnership with the private sector, will attempt to jump-start a market for troubled real estate assets that are weighing on bank balance sheets. He said the public-private investment fund, which would use government funds to leverage private capital, would initially seek to purchase $500 billion in toxic assets, and could increase that spending to $1 trillion.
• Geithner also promised a "comprehensive plan" to address the foreclosure crisis by bringing down mortgage payments and mortgage rates. He said details of that plan would be developed over the next few weeks.
(Excerpt) Read more at businessweek.com ...
Buyers strike??
Deja vu
I finally figured out what it is about Geithner that makes the market distrust him (besides the fact that he’s a brazen Tax Cheat and closet socialist)...he looks like Eddie Haskell.
I think it is the precursor of my proposed Pork National Bank of the USA. All wealth will be depositied into the bank and used to pay for all stupid liberal wet dreams. We will all have free mortgages, free health care, medications, cars, gas, etc. All of those at the top of companies will be toppled and bureaucrats will drive the bus. Ponies and unicorns will run free. Farts will even be laverder scented.
“Wait until Treasury tries to sell this debt to our creditors. They will balk.”
I don’t know how they can sell this debt at all. What they would be saying is “Lend us the money that we will use to destroy all means of repaying you.”
It’s utterly insane!
I can only hope that China, Japan and Europe are bad off enough and untrustful of the US economy enough that they will not buy more debt
He has a “comprehensive plan” but no details? How is this possible?
Yeah, I’m gonna make a million dollars but I won’t tell you how.
Is this one of those “the devil is in the details?”
World Wide Market Cap is around $50T recently. 4% Loss = $2T. Today.
Way to go, Geithner.
Well, he was a member of Paulson’s staff under the Bush Administration, and he’s just keeping up the good work.
Mr QTip, as I call him.
I woke up late, so was happy I could watch Geitner’s remarks previously recorded. So what does C-Span do? They say we are going to leave him and go to the Senate. Well, they send us over to another QUORUM Call.
PLAIN ENGLISH TRANSLATION:
Toxic Assets = money that people borrowed to purchase something (house, car, booze, drugs, college education) that they will not pay back.
The lenders were left holding the bag.
But the government will now extort money from us, our children and grandchildren, to bail out the lenders.
The debtors have something of value they didn’t pay for.
The lenders who made bad business decisions escape without loss or accountability for their own actions.
The government legislators and bureaucrats (both republicans and democrats) who contributed to the fiasco escape without accountability.
The prudent taxpayer gets screwed.
My country has gone insane.
This isn’t even my country anymore.
Much more than 2,000,000,000.
Just add interest and you have 4 trillion plus.
Today's actions is addressing the failures of the 1st phase of the program, which did not spur new lending because the banks used the money to shore up their balance sheets. Well, and to go on lavish retreats.
“We don’t know yet whether we’re going to need additional money or how much additional money we’ll need until we’ve seen how successful we are at restoring a sense of confidence in the marketplace,” said Present Obama last nite.
Liar, he knows it will need more and more money.
The banks didn't borrow at the Fed’s target rate for overnight funds which is as low as zero percent to lend, banks have instead put a surplus of $793 billion of cash at the central bank itself.
Which only helps them, not us. 3/4th of a TRILLION dollars just sitting there helping the fat cats.
I gleaned this material from a lame business site that does not allow it's stuff to be posted at FR, so I rewrote it so we can see more of how we are being taken advantage of.
After all, didn't Present Obama say "I screwed you up"?
Marxist communist usurper.
not to mention the $1.3 trillion porkulus borrowing being treated as a wholly separate expenditure
journalists these days cannot add $1 trillion plus $2 trillion = 3 trillion, can they
read Denninger’s market ticker blog and weep for the actual banking exposure that is hidden in this rotten pile of financial system crap
Jesus...even though I said for the past couple of months the ‘bottom’ would be 7,000...wish I was wrong.
He fought fixing the mortgage debacle for years so his people could rake in billions.
Yep, we're going deeper into hock to bail out our creditors.
Makes perfect sense to me... Yep, sho nuff.
5500 by the end of the year
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