tag:blogger.com,1999:blog-4900303239154048192.post3613558976000807123..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: The Geithner Plan: Time Is Not on Our SideUnknownnoreply@blogger.comBlogger6125tag:blogger.com,1999:blog-4900303239154048192.post-77331411666912254712009-03-30T02:25:00.000-04:002009-03-30T02:25:00.000-04:00"The Geithner scheme would offer a one-way bet: if..."The Geithner scheme would offer a one-way bet: if asset values go up, the investors profit, but if they go down, the investors can walk away from their debt," <BR/><BR/>- Krugman<BR/><BR/>http://www.reuters.com/article/GCA-CreditCrisis/idUSTRE52M4SS20090323<BR/><BR/><BR/>Ridding the system of $1 trillion in bad assets is 10% of the national debt. I cannot believe they think it's going to work. <BR/><BR/>Oh well, yay for when capitalism falls.utopia or busthttps://www.blogger.com/profile/09330052275507966278noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-54609838339615038712009-03-27T17:12:00.000-04:002009-03-27T17:12:00.000-04:00It is not clear to me whether or not a bank with q...It is not clear to me whether or not a bank with questionable assets to sell within this PPIP program is clearly blocked in some way from repurchasing its own assets at inflated values with the Public (85%) partner suffering the only likelihood of significant loss. If a financial product has a face value of $100,000 and a more likely value of $30,000, can Bank A or its subsidiary(or friendly competitor/cohort) buy that product for $60,000 putting only $9,000 at risk. What mechanism prevents the Private partner from over bidding and wasting yet more government funds?Jackhttps://www.blogger.com/profile/12971442888151627894noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-64480160267575708602009-03-26T19:09:00.000-04:002009-03-26T19:09:00.000-04:00hoh, a very pleasing answer, t-y.in-re china: if i...hoh, a very pleasing answer, t-y.<BR/><BR/>in-re china: if i were in charge of a 1.x-billion-person factory, i would not be upset to lend, but that my loan was buying penthouse yachts instead of future consumers. wall street is eating the dollar ecosystem.…Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-59396634279469815652009-03-26T14:58:00.000-04:002009-03-26T14:58:00.000-04:00Given that the Chinese seem to be becoming increas...Given that the Chinese seem to be becoming increasingly unhappy about lending massive amounts of money to the US, we may well be in the unpleasant situation where on the one hand the stimpack may not be big enough, but on the other, we cannot afford the one we have. Ugh.rosserjb@jmu.eduhttps://www.blogger.com/profile/09300046915843554101noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-4727080619878431342009-03-26T09:44:00.000-04:002009-03-26T09:44:00.000-04:00Hapa,1. I thought *I* lived in Nullville.2. A prin...Hapa,<BR/><BR/>1. I thought *I* lived in Nullville.<BR/><BR/>2. A principal argument for the good new (public) bank is that we don't have to hold ourselves (you and me) hostage to the overhang of legacy assets, including the derivatives.<BR/><BR/>3. As for the derivatives themselves, people who know much more than I do say that a systematic resolution would net out a large majority of their value. Ad hoc approaches (using bailout funds to make good on these contracts a few at a time) can actually impede resolution.Peter Dormanhttps://www.blogger.com/profile/00093399591393648071noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-89092440135067442202009-03-26T08:32:00.000-04:002009-03-26T08:32:00.000-04:00"mr. dorman, this is hapa from the nullville gazet..."mr. dorman, this is hapa from the nullville gazette, a quick question if i may.<BR/><BR/>"are you at all concerned at the possibility that unknown hundreds of billions of dollars of derivatives contracts could be triggered if the US feds make a move toward the transnat banks?"Anonymousnoreply@blogger.com