Relevant:
- Super SIVs- A Fraudulent-Attempt at Concealment
- Solving the Bank Crisis: More TARPs Are Not the Answer
- Banks Recruit Investors to Oppose Honest Valuation of Assets; Just how Unprepared are Banks for Major Losses?
- Mark Gongloff: Tim Geithner Admits Banks Bailed Out With Rigged Libor, Costing Taxpayers Huge Amount
- Mark Gongloff: Tim Geithner Admits Banks Bailed Out With Rigged Libor, Costing Taxpayers Huge Amount
2009-01-11 — cnn.com
Banks want the government to directly monetize their bad assets. Of course, that brings back the old problem of there being essentially no known limit to how much will have to be spent to do that. Then we have the old "pricing problem", which is that if the government "gets a deal" it will accelerate the crash of the market as it sets lower prices. But if the banks "get aid", the government (the taxpayers) will be overpaying for the garbage assets.
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Comments:
tvsterling at 21:53 2009-01-11 said:
This is a call for more free lunch. The banks have no intention of doing their part to restart lending. We need to save the money for other approaches to the problem & to keep the less fortunate out of the gutter. Permalinkadd a comment | go to forum thread
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