Geithner Plan II
By Barry Ritholtz - March 30th, 2009, 8:15AM
More on the Geithner Plan. The problem of banks buying the assets from themselves
The market does not beat them. They beat themselves, because though they have brains they cannot sit tight. ~Jesse Livermore
Macro Notes
in our new world, what multiple should be paid?Peter Boockvar
Without getting into a discussion on healthcare and its politics, one reality of our soon to be new system is the inevitable further rise in government spending that is headed to 25% of US GDP from its long term average of about 20%. In order to finance this, there will be a smaller private sector and as a result, there will be slower economic growth as nothing is for free. Should the average P/E ratio over the past 100 years of 15x still apply going forward or should there be a revaluation of the multiple paid for US corporate earnings?...
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March 30th, 2009 at 9:05 am
The Geithner Plan is simply the follow-up to an already ongoing PPC (Public Private Collusion) against the US taxpayer. More here: http://www.nakedcapitalism.com/2009/03/guest-post-banks-were-profitable-in.html
March 30th, 2009 at 10:54 am
What if the bank bid a price for $1,000,000 for every $100 toxic asset?
March 30th, 2009 at 1:15 pm
I just read about “CDO-squared” and from what i read they are similar to the leveraged etfs such as FAS or FAZ.
So we have leverage on already internally leveraged derivatives? It’s like more shit and a bigger fan…
March 30th, 2009 at 5:54 pm
don’t forget as well that banks may use the money and these special vehicles to tap losses in deteriorating portfolios (credit cards, consumer loans) it’s like going again on teh wild ride of SIV of German Landesbanken
March 30th, 2009 at 6:04 pm
The Rocky Horror Picture (PPIP) Show at http://mgiannini.blogspot.com/2009/03/rocky-horror-picture-ppip-show.html
March 31st, 2009 at 1:53 am
The conclusions of the video makes me SO ANGRY!!! Barry please make this a cause célèbre to get out the populist torches and pitch forks. From this past week’s Sunday news shows I thought that the Geithner may have “got it” and not been captured by Wall Street. This video say that THIS IS NOT TRUE!!!
Congress needs to hold public officials accountable (read Congressional hearings), maybe like former Goldman Sachs banker and now acting Assistant Treasury Secretary and TARP architect Neel Kashkari.
Wow, I cannot express how ANGRY I am. Barry, please make this your cause célèbre!!!!
March 31st, 2009 at 4:38 am
Oops, I would like to apologize to Assistant Secretary Kashkari. Although someone should be held accountable (obviously Geithner is too busy to think things through), I shouldn’t demonize anyone.
March 31st, 2009 at 10:58 pm
http://onlinejournal.com/artman/publish/article_4521.shtml
BANKRUPTING THE WORLD!