"Investors said they were unlikely to buy into the idea unless the government puts up a lot of the money and promises to absorb a lot of the losses....
The first loss has got to be the government's" -- Wall Street veteran Muriel Siebert, who runs the brokerage Muriel Siebert & Co. "
You know whom the GOVERNMENT is, right, readers? That's TAXPAYERS!!!
Taking it in all holes, aren't you, Amurka?
"Investors want incentive to help with bailout; Overhaul plan to be unveiled today" by Associated Press | February 10, 2009
WASHINGTON - Investors want the Obama administration to sweeten the deal before they agree to buy risky debt from US banks as part of the government's retooled program to rescue the ailing financial industry.
Related: Bank Bailout to Cost Billions More
The administration is expected to say today that the government's latest bailout strategy will be enticing big investors to buy more than $1 trillion in troubled assets from the banks. The hope is that, free from the drag of subprime mortgage debt and other bad investments, banks will be more likely to start lending again and the economy will rebound.
I'm so sick of the lending lie, readers!
See: U.S. Banks Driving Credit Crunch ON PURPOSE!!
Bush Administration Created Credit Crunch Crisis
Banks Cut Off CreditTreasury officials, briefing Congress on the plan last night, suggested two approaches that the administration was considering to deal with toxic assets, according to congressional staffers who spoke on condition of anonymity. These aides said the government might provide guarantees for the bad assets to establish a floor on possible losses or perhaps provide low-cost financing through the Federal Reserve for investors willing to purchase the bad assets.
Translation: YOU will pick up the LOSSES, taxpayers!!
And you are already down $78 Billion!
Exactly how the administration plans to persuade hedge funds, insurance companies, and private equity firms to buy into some of the world's riskiest investments remains unclear. But investors said they were unlikely to buy into the idea unless the government puts up a lot of the money and promises to absorb a lot of the losses if things go badly.
"The first loss has got to be the government's," said Wall Street veteran Muriel Siebert, who runs the brokerage Muriel Siebert & Co. "Maybe the first 25 percent of losses. We don't know what's in some of those bonds."
Billionaire Wilbur Ross, who runs the private equity firm WL Ross & Co., said investors want to know how much risk the government will accept if the investments go sour, and how much money the government is willing to put up - likely in the way of low-interest loans.
Why don't you cover it with some of your BILLIONS, fat-cat f***!!
Or better yet, maybe we should just gut you and cook you instead!
Treasury Secretary Timothy Geithner will unveil the program in a speech today. The partnership with the private investors would be just one element of a major overhaul of the bailout program, which has come under heavy criticism for distributing billions of dollars with few requirements on how banks would use the money.
"I want to see the incentives and the restrictions," said Jacob Benaroya, managing partner of Biltmore Capital Group, a hedge fund. For example, he said, he's unlikely to buy loans that must be held for 30 years....
--more--"Just wondering why the Globe saw fit to excise this from the web:
Lawrence Summers, head of the National Council of Economic Advisers said Sunday the Obama administration had received a number of proposals on how the private sector could participate in the solution to the banking crisis.
"It can't all be private capital... not given the size of the financial mess we have inherited," Summers said in an interview on "Fox News Sunday."
WHY NOT? They are the ones who MADE THIS MESS!!
Why should TAXPAYERS have to clean it up, a**hole!!?
But he said the administration believed the private sector could play a significant role with the right types of government guarantees.
Yeah, THIS AIN'T ABOUT YOU, despite the flowery rhetoric from that con-man president!!!
