“An economy wrecked by over leveraging (borrowing) on fraudulent paper will now be saved by providing low cost leverage (borrowing) to buy fraudulent paper. Are these people intelligent or what?” ~Jim Sinclair
The laughable part is that the only thing people talk about is “get the credit flowing” – this won’t really help economy – jobs are gone, the economy is wrecked and people don’t want more credit – people want higher wages (I know I won’t get any credit for the years to come – sentiments of anyone I know is the same). The Ford CEO said it best: “I don’t need credit, I need customers” – prices are still overinflated when compared to general public wealth. Everybody keeps on thinking that when the banks start lending everything will just go back to normal. WELL NOT HAPPENING – we are just creating another bubble, that’s all.
Sure does look to me that the main purpose of this plan is to create a market manipulated price for this garbage so financial’s won’t have to take the write off’s they should under mark to market rules. In my opinion this is just another way to circumvent M2M accounting without having to suspend it.
Mark Haines on CNBC is telling everyone this plan is destined for the same failures as all the rest. I tend to agree.
braunie you hit the nail on the head. This is nothing more than more Government intervention. Our country will be broke within 5 years.
Our country’s already broke. In 5 years, it’ll be totally broken.
The twit majority on CNBC never fails to amaze me with their stupidity. They just said, effectively, “Gosh, if so many are critical of the plan to get private money to buy toxic assets, then why is the market up so much?”
Well, DUH, when 85% of the downside risk on those toxic assets will be backed by the taxpayer while the vast majority of the upside goes to the private investors, how would the market NOT go up with so much _free money_ (MY money) available. The risks are socialized while the profits are privatized. What a deal! Meanwhile, a total 8 – 10 trillion (borrowed) dollars for which the taxpayers are liable is being allocated to bailouts, guarantees and the federal budget.
In the long run, we are toast…