U.S. to soon launch bank toxic asset plan: Treasury

Reuters/YahooNews ^ | 6/24/09 | Karey Wutkowski and Glenn Somerville

[Kartographer]

The U.S. government will "very soon" launch its program to use federal funds and private capital to buy banks' toxic assets, the new overseer of the government's $700-billion bank bailout fund said on Tuesday.

[Kartographer]

Captain ! Captain Iceberg dead ahead!!!!

[DuncanWaring]

How many times have they done this already with no apparent success?

[jiggyboy]

If they’re talking about the latest giveaway, the PPIC, then those “federal funds” are coming out of the FDIC. Last chance to get your money out of banks, folks.

[taxtruth]

I think we know who’s the toxic asset in America.The Federal Reserve.End the fed.

[jiggyboy]

“no apparent success”? In all seriousness, look at Goldman Sachs’ latest earnings report — the plan all along has been, and will continue to be, to ravage every last dollar from every source and funnel it directly to a favored few.

[KarlInOhio]

Wasn’t TARP originally sold as a Toxic Asset Relief Program to clear all those bad mortgages off the books instead of just handing it out to banks with some very sticky strings? Sometimes I think that they really have no idea what they are doing.

[!1776!]

How many times have they done this already with no apparent success?

My understanding (though small) is that they haven't as of yet done anything to actually sort out the toxic loan issue. My understanding is that some genius thought it would be better to just dump money into banks for a while first, before actually dealing with the real problem - bad loans bundled up with good loans.

Not knowing which bundles had bad loans, or how much in bad loans, or how bad the loans were made the bundles worth less - potentially even less than they are actually worth - on the banks balance sheet.

So ignoring that for months and a couple trillion dollars they apparently are getting back to the basic issue - unbundling and sorting the bad from the good.

Exact same process that was used to resolve very simmilar problems during the farm crisis...

[CharlesWayneCT]

That’s what they were supposed to do with the money last October. And if they had stuck to that plan, as bad as it was, we probably would be recovering by now.

Instead, they took the detour of buying banks, and then car companies, and god knows what else with our money.

Now that the economy has crumbled around them, they are finally going to do what the law was supposed to do with the money? Too little, too late?

[bitterohiogunclinger]

“I think we know who’s the toxic asset in America.The Federal Reserve.End the fed.”
Then you'd be playing right into the Obama plan. The Fed is the next thing on the takeover list. These people are only marginally stupid, in that they can't fix anything with Keynesian policies, but they aren't trying to fix anything, they are trying to control everything.
Go back and watch the run up of oil prices that occurred the minute the DemonRATs controlled Congress. Follow that with the financial meltdown, initiated with intentional leaks to the press from key DemonRATs. Look at the trillions of dollars of payoffs to DemonRAT supporters and union thugs.
And the sound of protest from Americans? Cricket noise.

[taxtruth]

Sorry,I don’t buy your nonsense dribble.