next week's prediction

[wimpy77]

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?

 

[Toro]

No idea. No clue at all.

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

 

[Paulie]

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.

 

[wimpy77]

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.

 

[manu1959]

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.....

 

[toomuchtime_]

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.

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?

 

[wimpy77]

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.....

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.

 

[Annie]

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.....

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.

and have as much luck with that as getting 'our allies' to put up troops and equipment into Afghanistan.

 

[wimpy77]

it will work if they give the securities to do it.

 

[editec]

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.

 

[eots]

less is more ..we must learn to sacrifice .like... the Obama.. for the good of the whole... and to stay safe from the terrorist...we love you....big brother

 

[Paulie]

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.....

The problem is no one really knows the true market value of the bad assets. I'm in favor of dropping the mark to market rule and letting these assets get valued properly. I think that would be a huge step in the right direction.

 

[wimpy77]

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.....

The problem is no one really knows the true market value of the bad assets. I'm in favor of dropping the mark to market rule and letting these assets get valued properly. I think that would be a huge step in the right direction.

agreed

 

[alan1]

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.

yer a phuckin idiot, just like me.

 

[Charles_Main]

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.

That is their plan, but many people think they will not find anyone in the private sector willing to do it. Which is part of why the Market has been going down since Timmy announced the plan.

 

[wimpy77]

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.

That is their plan, but many people think they will not find anyone in the private sector willing to do it. Which is part of why the Market has been going down since Timmy announced the plan.

wrong his was to vague is the reason why the market went down. actually watch either fox business or cnbc. on friday cnbc went to the floor and were asking questions on what was going on. they were telling reporters that they wanted a detailed plan on what they were going to with the banks.

after geithner and the white house put out statements saying nationalization was not their plan the market came back from 250 to finish down a 100. the market wants answers.

on buying the assests, they also had three hedge fund guys saying there were ready to buy the assets whenever the fed decided how much the price would be and once they were ready other people would join them.

 

[Toro]

The problem is that everyone is sitting on their hands. I've had many conversations with all sorts of money managers as of late who are invested mainly in cash and are just waiting.

There is a tremendous amount of cash on the sidelines.

 

[editec]

The problem is that everyone is sitting on their hands. I've had many conversations with all sorts of money managers as of late who are invested mainly in cash and are just waiting.

There is a tremendous amount of cash on the sidelines.

And none of it in the hands of the AMERICAN WORKING CLASS.

Supply sider economics had finally reached its inevitable conclusion.

And lookie here! It didn't end up with wealth trickling down on all of us, did it?

No, of course it didn't. It never does.

The end game of those discredit economic theory is that the whole system is crashing down on itself.

Why?

Because foundation upon which all wealth rests is having a WORKING CLASS that is making enough money to pay their bills, and put aside something for a rainy day, send their kids to school, pay for their health care, save for their retirements, and all the other middle class things that Americans once thought expressed a HEALTHY economy.

Wealth is never created on WALL STREET.

REAL WEALTH (as opposed to paper wealth) is created on MAIN STREET.

 

[editec]

The market is clueless.