next week's prediction

Discussion in 'Economy' started by wimpy77, Feb 20, 2009.

  1. wimpy77
    Offline

    wimpy77 Member

    Joined:
    Jan 21, 2009
    Messages:
    591
    Thanks Received:
    10
    Trophy Points:
    16
    Ratings:
    +10
    because od criticism of this week and investors are supposely making geithner give his approach to fixing the banking system early next week.

    anyone want to make a prediction on what the plan is? paulie, toro and gonegolfin wanna way in?
     
  2. Toro
    Offline

    Toro Diamond Member

    Joined:
    Sep 29, 2005
    Messages:
    50,801
    Thanks Received:
    11,059
    Trophy Points:
    2,030
    Location:
    The Big Bend via Riderville
    Ratings:
    +25,136
    No idea. No clue at all.

    If past form is anything to go by, it will be vague and lack details or be unworkable.
     
  3. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,626
    Thanks Received:
    4,860
    Trophy Points:
    1,130
    Ratings:
    +15,543
    I'm certainly no expert to be asking ME that. It's anyone's guess. Bank of America looks solvent at this point, they don't even want any more TARP money. That's good. But I'm not so sure about Citi. If ANYONE gets nationalized, or whatever they end up ultimately calling whatever "creative" solution they come up with, it'll be Citi.

    I'm hoping it's something the market likes, that's all I know.
     
  4. wimpy77
    Offline

    wimpy77 Member

    Joined:
    Jan 21, 2009
    Messages:
    591
    Thanks Received:
    10
    Trophy Points:
    16
    Ratings:
    +10
    i was watching a show on cnbc that i actually like. they said that what they will likely do is get the private sector to buy the assets the banks dont want apparently because they banks would actually have to see how bad it really is.
     
  5. manu1959
    Offline

    manu1959 Left Coast Isolationist

    Joined:
    Oct 28, 2004
    Messages:
    13,761
    Thanks Received:
    1,625
    Trophy Points:
    48
    Location:
    california
    Ratings:
    +1,626
    they need to provide a fresh securties and equites "bank" to give the banks insurance and they will need to buy up the toxic debts.....until the do this or something similar the banks are just going to hold pat and not increase their risk posistion.....
     
  6. toomuchtime_
    Offline

    toomuchtime_ Gold Member

    Joined:
    Dec 29, 2008
    Messages:
    5,600
    Thanks Received:
    715
    Trophy Points:
    245
    Ratings:
    +2,010
    That's what Geithner's plan proposes, but it makes no sense to me. The reason we are in this mess is that private investors didn't want to buy those securities. I suppose the banks could unload them to speculators for 10 or twenty cents on the dollars, but why would they want to do that? The amount of money they would get would not allow them to greatly expand their business and the debt backing these securities is still over 90% good, so it would make more sense for the banks to just hold on to them if they can.

    Geithner had said the government couldn't buy these securities from the banks because they wouldn't know how to value them, but Obama's housing plan proposes buying $200 billion of these securities from Freddie and Fannie. Don't Geithner and Obama speak to each other?
     
  7. wimpy77
    Offline

    wimpy77 Member

    Joined:
    Jan 21, 2009
    Messages:
    591
    Thanks Received:
    10
    Trophy Points:
    16
    Ratings:
    +10
    Treasury Secretary Timothy Geithner is preparing to release more details of his bank bailout plan early next week, according to a source familiar with the talks.


    cnbc.com
    Treasury Secretary Timothy Geithner
    --------------------------------------------------------------------------------


    The reason is pressure is building for more details from the financial community, this person says.

    Wall Street executives have been on edge about the Treasury Department's plan since Geithner's dismal performance last Tuesday, and what they believe was over promising and under delivering on the bad bank.

    Geithner is reacting to this criticism by moving details of his plan earlier than he planned knowing the market is demanding some more clarity on the bailout, according to Wall Street sources.

    Under the plan released by Geithner last week there is a renewed effort to get bad assets off bank books, but it set aside a proposal to make direct purchases through the formation of a giant government “bad bank” to warehouse these assets until they recover some value. Instead the Treasury — possibly in conjunction with the Federal Reserve — will set up an "aggregator bank” and try to get private investors to step up and buy these assets.




    Charles Gasparino
    On-Air Editor
    But there remain questions about how exactly this will work and how the private investors will be convinced to put up that much money.



    there's the basic layout of what they think he will announce.
     
    Last edited: Feb 20, 2009
  8. Annie
    Offline

    Annie Diamond Member

    Joined:
    Nov 22, 2003
    Messages:
    50,847
    Thanks Received:
    4,644
    Trophy Points:
    1,790
    Ratings:
    +4,770
    and have as much luck with that as getting 'our allies' to put up troops and equipment into Afghanistan.
     
  9. wimpy77
    Offline

    wimpy77 Member

    Joined:
    Jan 21, 2009
    Messages:
    591
    Thanks Received:
    10
    Trophy Points:
    16
    Ratings:
    +10
    it will work if they give the securities to do it.
     
    Last edited: Feb 21, 2009
  10. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,618
    How deeply will these toxic debts have to be discounted BEFORE anyone is willing to buy them?

    This whole fucking plan to nationalize the toxic debts makes like ZERO sense to me.

    Now that could be because I simply don't understand its brilliance. I ready to admit I'm more than just a little confused.

    OTOH, it could be because I see no sane reason for the American people to assume the bad debts of the wealthy class that created (or at least went along with) this mess, too.

    Politically and economically I have no idea what this makes me.

    Does this make me a communist or a Libertarian and merely a cynical fellow who knows doublespeaking bullshit when he hears it?

    I truly don't know.
     
    • Thank You! Thank You! x 1

Share This Page