America has adopted show business song and dance as a mainstay
“a waste is a terrible thing to mind” .. JoJo . still love that slap upside the head

From a workin man who invests in free market capitalism via time and energy buying stuff to produce my product with … I hope y’all figure how to bring it all back in line … I hope my President Obama and past State Senator gets a handle on the game you all play . so I can survive without playing the game you love to play . cause I find your game revolting . necessary . but still the same

that was background to mention another necessary to worry about .. property taxes to balance these printagiveaways juicing the economy as we knew it .. I am sure as anyone . who takes care of who with its muscle
_____
ps – BR I need a thread to add juice to the World Currency idea

Toxic assets plan a robbery: Stiglitz

25/03/2009

The US government plan to rid banks of toxic assets will rob American taxpayers by exposing them to too much risk and is unlikely to work as long as the economy remains weak, according to Nobel Prize-winning economist Joseph Stiglitz.
“The Geithner plan is very badly flawed,” Stiglitz said on the sidelines of a Credit Suisse Asian investment conference in Hong Kong yesterday.

US Treasury Secretary Timothy Geithner’s plan to wipe up to US$1 trillion (HK$7.8 trillion) in bad debt off banks’ balance sheets, unveiled on Monday, offered “perverse incentives,” Stiglitz said. Washington is basically using the taxpayer to guarantee against downside risk on the value of these assets, while giving the upside to private investors, he said.

“Quite frankly, this amounts to robbery of the American people. I don’t think it’s going to work because I think there’ll be a lot of anger about putting the losses so much on the shoulder of the American taxpayer.”

Even if the plan clears banks of massive toxic debt, worries about the economic outlook mean banks could still be unwilling to make fresh loans, while the prospect of a higher tax burden to pay for various government stimulus plans could further undermine US consumers, he said.

Some Republican lawmakers have also expressed concern over the incentives offered by the government, which could end up providing private investors with more than 90 percent of the funds to buy the troubled assets. But President Barack Obama has said the plan was critical to economic recovery.

Barclays Capital, meanwhile, says the success of the Geithner plan depends on a recovery in house prices.

For the plan to work, house prices need to stop declining, said Chotaro Morita

“For that matter individual investors should be allowed to participate, but that would make it clear how large the subsidy is.”

“but that would make it clear how large the subsidy is.”

yes, quite, it is that transparent.

yeah – i wonder how much the American public would love this plan if they understood it. It’s as confusing as hell, even for people who know what they’re doing.

and to Barry’s point in this post – the plan does little to solve the problem of the market wanting to pay 30c and the banks asking 80c… this leverage won’t fix that…

Yeah, the banks have to be recapitalized. Will that get them lending again? Not necessarily. See Krugman’s recent column about despair and his comments on the videos Barry posted today. Just because the banks get into a position where they can lend doesn’t mean a boom. They need customers who want to borrow and are creditworthy; those won’t appear til recovery.

Of course financial stocks have improved; they can hardly get worse. And, they are being subsidized out the wazoo. How will they act when the government teat is withdrawn?

Commodities are rising because China is stocking up and because they were so far down, a bounce can be expected. It doesn’t necessarily mean that there is growth. In fact, I plan on buying some SMN after the optimism from the plan starts to fade.

Barry pretty well rebutted the housing bottom baloney in the MSM in his previous post.

Emerging markets? The will improve if they think we are going to buy their stuff again. Federal attempts to reinflate the bubble will raise hopes. China’s economic stats are notably unreliable and have actually been worrisome if you read Michael Pettis blogs, which are mysteriously being blocked by China.

March 24th, 2009 at 1:21 pm
“And btw just cut the profane insults….it’s just not necessary”

Then learn how to read

……That’s not the problem….the problem is you don’t always realize the implications of what you’re saying…..and when it’s pointed out you can’t respond in an adult way…..