Thursday, February 26, 2009
Government financing and guarantees for illiquid mortgage-backed junk
It's Time to Break up the Big Banks
Timothy Geithner is putting the finishing touches on a plan that will dump $1 trillion of toxic assets onto the US taxpayer. The plan, which goes by the opaque moniker the "Public-Private Investment Fund" (PPIF), is designed to provide lavish incentives to hedge funds and private equity firms to purchase bad assets from failing banks. It is a sweetheart deal that provides government financing and guarantees for illiquid mortgage-backed junk for which there is currently no active market. What's got Geithner worried, is the fear that the public will see through this latest boondoggle and set off a political firestorm. If that happens, the markets will go into a swan-dive and Geithner's career at Treasury will come to an abrubt end. ~~~~~ meanwhile Darling does a weasel.
Posted by troy @ 10:44 AM (918 views)
3 thoughts on “Government financing and guarantees for illiquid mortgage-backed junk”
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quiet guy says:
An interesting post Troy.
Here is the President (not) speaking on the issues raised by Information Clearing House.
The stitch up of American taxpayers appears to be proceeding smoothly to me.
troy says:
There does seem to be clear parallels to our own £320Bn (proposed?) asset insurance scheme
yes, ‘we the people’ are an insurance company apparently!
quiet guy says:
Curses. Here is the link I meant to give with post number 1 (speech by President Obama)
http://www.youtube.com/watch?v=PEyj_yZpGKE