You know whom the GOVERNMENT is in this case, right, readers? TAXPAYERS!!!
Related: Toxic Assets Toxic For Taxpayers Only
They are TOXIC because they are WORTHLESS PILES of CRAP that can't be unloaded. So what's going to happen is the richers will pick out the golden corn kernels from this crap (using taxpayer dollars) and Amurkns will once more get stuck with the crap.
"Wall St. celebrates, others wary as US pushes to buy toxic assets; Hub units may join in effort" by Beth Healy, Globe Staff | March 24, 2009
Investors cheered the Treasury Department's plan to buy up to $1 trillion in toxic assets from banks with the help of private investors, sending blue chip stocks up nearly 500 points, or 7 percent, yesterday even as some economists predicted the program would fall short.
The plan released yesterday is a return to the initial intent of the $700 billion bailout fund approved by Congress last October. Five months later - and after billions of government dollars were spent to shore up ailing banks - federal policy makers are aiming to ease lending by offering banks a way to get rid of bad loans and investments.
Yeah, you got looted and are being lied to about it, 'murka.
The program would use about $100 billion of the original bailout money, along with giant federal loans, to encourage private investors to buy from the banks' mortgage-related loans and investments that have lost value or have no market.
Some lenders that may be in a position to unload assets under the program, including
"I'm sure we're interested," said Charles Jacklin, chief of Mellon Capital in San Francisco, part of Bank of New York Mellon. He said the government should have started buying bad assets last fall, but "better late than never."
Here we go again!!!
Wall Street, welcoming the details of the government's latest plan to get the economy going, sent all the major indexes up about 7 percent, taking the Dow Jones industrial average to a 7,775.86 close, its fifth-biggest point gain ever. The Standard & Poor's 500 index rose 7.1 percent, to 822.92. The Nasdaq rose 6.8 percent to 1,555.77.
Of course they did; if someone came to you and said we will buy up all your s***, how would you feel? You'd cheer, too!
Bank of New York Mellon, which already has a $20 million contract to administer the Treasury's bailout fund, will bid on the new business through its Boston bond group, Standish Mellon Asset Management. Other large firms, including hedge funds and private equity firms, are mulling whether to buy the troubled assets now that the government is offering subsidies. Those include Sankaty Advisors, a debt hedge fund run by Boston's Bain Capital, and Thomas H. Lee Partners in Boston.
How's that butt-hole feeling, 'murka?
MassMutual Financial Group, the Springfield insurer and investment company, said it was reviewing whether it might buy assets under the program, spokesman Mark Cybulski said. "We are not currently considering selling any of our own assets as part of the plan." Fidelity Investments also said it is evaluating the details of the plan.
The Treasury effort targets "legacy" mortgage loans made during the housing boom, as well as securities - devalued assets, sitting on the books of banks, that haven't traded since last year, when the markets for mortgage-backed investments evaporated.
The plan is to have banks bundle loans and offer them at auction. The Federal Deposit Insurance Corp. and Federal Reserve Bank would then lend money to large private investors, from banks to hedge funds, that would bid on the loan packages.
Isn't that how we got in this mess? So the investors can undrpay (using tax dollars) and make out on the deal while taxpayers hold the bag?
The Fed also would expand a program of loans - also up to $1 trillion - to entice private investors to buy mortgage-related securities. Five investment managers would be hired by the Treasury to raise pools of money, matched by the government dollar-for-dollar, that they would use to buy the troubled securities. Treasury will also offer government loans to augment the money pools and increase the buying power of the managers.
It's always ALSO, ALSO, ALSO. I can't keep track of the trillions this country is throwing away at banks and financial institutions, can you?
BlackRock Inc., the large New York investment firm, yesterday said it plans to participate in the program, as does Pacific Investment Management Co., better know as PIMCO, the bond firm. Curtis Arledge, cohead of fixed-income at BlackRock, said in an interview, "I think all three parts of the program are attractive."
Applicants must raise $500 million in private capital to participate, and apply by April 10. The winning bidders will be informed of the decision by May 1. Despite nearly $2 trillion in funds being made available to revive the banking system, many economists and financial executives say banks won't lend until the economy starts to improve and the negative sentiment blanketing consumers and businesses begins to lift.
After I've posted the credit crunch on purpose how many times now? Sob!
Harvard professor Kenneth Rogoff, a former International Monetary Fund chief economist, said the government is "trying to keep the banks going, trying to hope they'll recover profitability." He said the plan fails to address the fundamental problem - that some banks are insolvent and should not be propped up.
You know, how can they not be with the trillions they have gotten -- unless they stole it?
"The worst of all worlds is where the taxpayer is putting in $1 trillion, it's not getting the job done, the management that made the mess is still in place, the regulatory system that created the mess is still in place, and we're just bleeding along," Rogoff said.
THAT is WHERE WE ARE, Americans!! And it's GONNA GET A LOT WORSE, too!!!
"Why the End of America is Closer than You Think
While the sheeple of America are caught up in their hypnotic dreams of world domination, white-collar hoodlums in Washington D.C. and Wall Street are stealing everything!
Given these circumstances, it is not difficult to predict the demise of America as we know it. The U.S. dollar will eventually collapse or be abandoned. This could happen literally overnight, or it could take years, but make no mistake: The American people will not be forewarned of the collapse of the dollar. It will be a sudden, surprise announcement, and all the politicians and banking elitists who engineered the whole thing will pronounce their "shock" that such a thing could happen! "We could never have predicted this," they will insist, even while the whole thing was actually engineered by the very same people.
One day, Americans will wake up and discover that all banks are on "bank holidays" (which means that someone in Washington is taking a holiday with your money while YOU can't access it).
Within hours, the National Guard will roll into the cities of the United States, and Americans will find themselves penniless prisoners in their own country. Anyone who protests will be arrested or shot. Law will be dispensed at the end of military rifles, and the President will get on television and explain how this is all being done for YOUR benefit! It's for your own safety and protection, didn't you know?
From here, it's difficult to say exactly what will unfold. We could see UN troops on U.S. soil, the IMF taking over the U.S. banking system, and the forced transition to a global currency. Other possibilities include the Balkanization of the formerly-united States of America, with regional nation-states declaring their own independence from Washington.
During this chaos, just-in-time delivery of food and products will grind to a halt. Store shelves will be emptied. A healthy economy of barter will immediately spring up to fill the void. Those who have things to trade (toilet paper, butter, salt, sugar, matches, gold, silver, food, fuel, etc.) will eat. Those who don't will starve. Health will plummet and infectious disease will become a very real threat in many cities. The conventional medical system will, of course, be utterly useless and will run out of medicine within days or weeks.
This economic transition chaos will be short-lived, however, and from the ashes of economic turmoil will spring a new nation (or nations) of People who have finally awakened from their complacency. New governments will be forged, and the fields of economic ruin will be ripe for the planting and sprouting of new ideas from a new generation of visionary leaders.
more - Mike Adams at Counterthink
Also see: How to Create A Healthy, Wealthy Abundant Nation from the Ashes of America's Demise
--tipocap--"
Back to your regularly scheduled propaganda:
In announcing the plan, Treasury Secretary Timothy F. Geithner said the goal is to "use taxpayers' money effectively and wisely to, again, help get credit flowing."
Sigh.
He said the government tried to set it up so taxpayers would benefit alongside private investors if the value of these assets improves over time. Taxpayers, many of whom are outraged over a recession driven largely by Wall Street's excesses, also will share the risks if the assets don't gain in value.
What LIARS they are!!!!!!!! This has been SET UP for the RICHERS and their friends ON PURPOSE, and to see this drivel in the paper as news really hurts!
Many of the loans in question are still performing, and many of the securities still have value.
Then WHY DOES NO ONE WANT THEM or want to sell them (see article below)?
By kick-starting the markets for them, allowing the assets to be purchased at what might be considered bargain prices, the government is increasing the likelihood they will gain value in the long term. The idea is that banks will be relieved of the burden of carrying assets for which there is no market, freeing up cash and increasing the flow of credit for car, home, business, and other loans.
How many times can you be shoveled this shit mound of lies, America? No, really?
"The original plan foundered on the issue of how to price the assets, and this new plan doesn't fundamentally solve that problem," said William Poole, former head of the Federal Reserve Bank of St. Louis. "Pricing these assets is still going to be very complicated."
That's why Ron Paul should be listened to; the markets should be allowed to work, value these things up, and right itself. This looting intervention is nothing but a lie and fraud, anyway!
That's because not all toxic assets were created equal. Some are simply home loans offered by banks that have since soured as people fell behind on their mortgage bills. The more pernicious assets are those backed by home loans that were chopped up and packaged into securities and sold to investors across the globe.
And those are where your derivatives, debts, etc, come in -- SELLING SHIT is what they were doing!!!
Geithner also said the government did not want to "benefit people who got us into this mess," in a reference to the $165 million in bonus payments made to employees of insurer
Have you had enough lies yet, readers (AIG again)?
Speaking at a hearing on bank lending on Beacon Hill yesterday, US Representative Barney Frank, the Newton Democrat who is chairman of the House Financial Services Committee in Washington, called the Treasury Department's plan "essentially what has to be done given the situation. The alternatives are even worse."
Shut up, you flaming fart bag!!!!
Oh, and about those SELLERS!
"Selling the sellers" by Steven Syre, Globe Columnist | March 24, 2009
Watch the stock market and you might think embattled Treasury Secretary Tim Geithner solved the nation's financial crisis yesterday.
Not by a long shot. New details about the government's plan to buy troubled loans and securities - once known as toxic but now rebranded as "legacy" assets - suggest a strategy that will have an impact.
But there isn't any evidence Treasury officials solved the most serious issue keeping all those problem assets on the balance sheets of banks: the reluctance of sellers to bite the bullet.
Perhaps this will change. Maybe the highly publicized stress tests going on at the nation's biggest banks will be used to pressure sellers to strike deals. But those banks have shown little interest on their own, unwilling to turn painfully discounted asset valuations into deep, permanent losses. It takes two sides to make a trade.
The Treasury plan will accomplish a few things. It has already attracted considerably more interest on the part of private investors, despite their fears of bellicose congressional hearings and punitive retroactive tax legislation.
But this guy isn't biased or anything.
Those private investors will set the price of a deal and then share the financial gain or pain with the Treasury, mostly a good thing.
Yeah, except ALL the PAIN will be YOURS, taxpayers!
The transactions, worth up to $1 trillion or possibly more, will be heavily financed by the Federal Deposit Insurance Corp., which in turn is borrowing money from the Treasury. Imagine a sale of discounted assets in which a borrower loans the buyer 85 percent of the price. Private buyers and the government would become partners as the owners of the remaining 15 percent of equity.
Those private buyers could lose their investment money, but they're not on the hook for the loan if the transaction turns out to be a real stinker. More important, they could double their investment if the assets appreciate by only 15 percent. That will probably make those investors more willing to compete harder and bid more to buy loans and securities than if they had modest or no financing from other sources. The assets don't have to appreciate nearly so much for the investors to make a handsome profit.
While YOU are stuck holding a bag of sh........
Depending on whom you talk to, this is either the entire point, beside the point, or just a terrible idea. From the Treasury's perspective, its plan will finally create a real market for toxic - sorry, legacy - assets that have been gumming up the financial system and dragging down the nation's economy. Even Geithner acknowledges the risks involved, but says this is the best way to get the financial system back on its feet, along with all the other stimulus plans the federal government has in the works.
Some analysts think the plan and its government financing will lead to unrealistic prices and push the problem around instead of solving it. Count Merrill Lynch's chief investment strategist, Richard Bernstein, in that camp.
What it is meant to do, no doubt!
"Private investors can effectively pay a reduced price because of generous government financing, yet banks can receive fictitious inflated prices for their assets," Bernstein wrote yesterday. "The problem is the plan sacrifices the longer-term health of the economy and the financial system for a short-term fix for the banks."
That's what is going to happen!!!
Of course, that assumes banks will really consider sale prices attractive and make the deal. Not everyone does, and the doubters point to past experience. They say banks have only acted to unload bad assets when threatened in other credit meltdowns. They think banks in question now will cling to problem assets rather than sell to investors who could profit at their expense.
Those banks are something else, 'eh?
"The only way you turn a reluctant seller into a real seller is to put a gun to their head," says bank analyst Gerard Cassidy of RBC Capital Markets, who referenced the savings and loan crisis. "That's what the Resolution Trust Corp. did in 1991. That was pure liquidation, which is what you really need to move this stuff out. This one is going to have more dancing around and analysis and assumptions."
Yikes!!!!
The Treasury's plan tries to walk the middle ground between two more extreme points of view. One sees severe, inevitable bank losses that would best be absorbed now. Another expects banks could earn their way out of most problems, given time, though no one really knows how long that would take. But the best efforts of government have no chance of working if they can't bring buyers and sellers together. So far, they only have half the problem solved.
That's the first thing he said that I agreed with.
I generally don't read that guy; however, I thought the juxtapostion was a nice touch. Which one of them is lying, huh?
