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Re: Bhaskar.ing
So you might be a counterparty? Its all robbery and enslavement of future taxpayers.
posted by
Soul_Builder101
on
March 24, 2009
at
10:46 PM
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Re: you always have your way to say.....good.
RE
9STAR Thanks!
posted by
Soul_Builder101
on
March 24, 2009
at
10:43 PM
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Re: riri0322
Thanks!
posted by
Soul_Builder101
on
March 24, 2009
at
10:42 PM
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Re: FormerStudentIntern
I wish it were even a band aid! It is robbery!
posted by
Soul_Builder101
on
March 24, 2009
at
10:41 PM
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Re: BC-A
Like you said...even Silverstein wants to be bailed out!
posted by
Soul_Builder101
on
March 24, 2009
at
10:40 PM
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Re: drohan 254
Thanks!
posted by
Soul_Builder101
on
March 24, 2009
at
10:39 PM
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Re: soul builder
Thanks TIMMYTALES. I fear it is demons we are dealing with...heartless demons who do not see their own mortality!
posted by
Soul_Builder101
on
March 24, 2009
at
10:38 PM
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Re: rockingrector
This is what I always supported. Bailing us out would have preserved mortgages and demand. There would be no layoffs. But they outsourced, bailed out and have given bankers all they need to be richer. But, demand will have its say when the whole scheme collapses. No money to spend on our part will cause them to fold. Then we will have no food and will dine on bankers!
posted by
Soul_Builder101
on
March 24, 2009
at
10:37 PM
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Re: Re: The Amazing TALF "Bait and Swich"
Thanks Corbin...for making it easier to understand how the gamblers operate!
posted by
Soul_Builder101
on
March 24, 2009
at
10:33 PM
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Re: Economy will get better soon........hope makes it better...
Thanks Sue! I wish it could. The Us has no real production...that is the source of wealth!
posted by
Soul_Builder101
on
March 24, 2009
at
10:31 PM
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Re: Soulbuilder
Thanks drohan! I don't know what will work. No amount of money can save anyone! The dollar will be crippled because they are just printing money like madness! Up to 15 times our current money supply!
posted by
Soul_Builder101
on
March 24, 2009
at
10:30 PM
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Re:
If they allowed it to collapse, we could try new stuff to recover...like the Treasury creating its own money that is interest and debt free! But, no. The bankers want control until God smashes their butts!
posted by
Soul_Builder101
on
March 24, 2009
at
10:28 PM
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Re: callista22001
Its all a plot to keep us as debt slaves. We bail them out, they recover for another round of credit parasitism, buy treasury bills, inject money so that loans could be resumed. So we can borrow now. But they took our jobs away. So Politicians and bankers are backing each other up. Nobody is backing us up!
posted by
Soul_Builder101
on
March 24, 2009
at
10:26 PM
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I can't wait to read the links you have provided, but am in a terrible hurry right now. So in the evening I must savor them. I must also read the AIG links you left earier, because I am a business service partner to AIG who, in India are a JV with Tata in the life insurance sector, and lately it has taken a lot of beating on account of the AIG dealing, paying millions in bonus to their top officials.
posted by
Bhaskar.ing
on
March 24, 2009
at
9:20 PM
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you always have your way to say.....good.
posted by
9STAR
on
March 24, 2009
at
8:49 PM
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well said
posted by
riri0322
on
March 24, 2009
at
3:49 PM
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I myself think these bailouts are band aids.
posted by
FormerStudentIntern
on
March 24, 2009
at
3:49 PM
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They can retreat with the bailout money. That solves that. So it goes. BCA, Bill*s Roost
posted by
BC-A
on
March 24, 2009
at
2:38 PM
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posted by
drohan254
on
March 24, 2009
at
2:28 PM
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soul builder
When are they gonna start bailing us (the little people) out?
posted by
TIMMYTALES
on
March 24, 2009
at
1:49 PM
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Yes! A better idea would be to take all those billions which are being used to bail out the banks, and diivide them equally between every adult in the country. Then we'd all start spending the extra cash and the economy would get going again and the banks could actually earn their money. How about that for an idea??
posted by
Rockingrector_retd
on
March 24, 2009
at
12:46 PM
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Re: The Amazing TALF "Bait and Swich"
Bank X has bad assets (mortgages) priced at 80% of their original selling price. They are now only worth 20% of that price. Hedge funds don't want to touch them. So we come up with TALF. The government backs the hedge fund's purchase of the assets at the 80% price.....the banks make big money. The hedge funds don't lose because the taxpayers are covering the inflated price.....
The hedge funds will default on all of the covered portions. But the big-hearted banks want tosave the day by buying back the very same assets at 20% of what they sold them to the hedge funds for.....the hedge funds get to pocket millions in fees for handling the transactions....the banks now have proprty back at market value and hold on until they start unloading (selling) them as the real estate market begins to rise again.......they get to, in black jack terms, double down on their winnings...
The losers......we taxpayers......
posted by
Corbin_Dallas
on
March 24, 2009
at
12:00 PM
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Economy will get better soon........hope makes it better...
posted by
9STAR
on
March 24, 2009
at
7:16 AM
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Soulbuilder
let me return my money before it will collapse ..at least i will have a white coin for the black days
posted by
drohan254
on
March 24, 2009
at
5:32 AM
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The Amazing TALF "Bait and Swich"
The greatest bait and switch of this generation in all its visual
splendor. As a result of the TALF's non-recourse/non-margin nature, a
hedge fund X can buy Bank X's MBS Portfolio which is marked on the
bank's books at 80 cents on the dollar (but has a market price of 20
cents) for the marked price with a 3% equity check and TALF filling the
balance. A day later, Bank X repurchases the portfolio from hedge fund
X at the 20 cent market price, and pays HF X a $5 million fee for the
"trouble." The way this would be effectuated is that at t+1, the Hedge
Fund decides to run a loss model via
TREPP of
what have you, and, lo and behold, realizes the loan will default in 1
day (assumptions and outcomes can be easily fudged) and threatens to
default on the entire TALF portion. The key word here is
non-recourse:
the HF would not be liable for anything over its first-loss equity
component. In the case of a declared portfolio default, the TALF
portion would have to be marked at pure market value, and taxpayers
would get stuck with as close to a donut as possible. So here is Bank X
running back to the rescue, offering to buy back the original portfolio
at market price (even a 1 cent premium would make it politically
palatable), in this case 20 cents. For the sinister minded, it become
immediately evident, why hedge funds, once loaded up on these
investments, would have an incentive to push down the value of the
entire portfolio complex, especially if they, wink wink, bought
protection via CMBX or other derivatives. The
recent spike in CMBX spreads (massive buying pressure) may be one indication of just how hedge funds might be positioning themselves.
Once
purchased the bank waits for the portfolio to appreciate to 50 cents on
the dollar by 2014 (although the appreciation is not necessary and is a
best case example of how the bank would fare
if the market does pick up). Hedge fund X takes a 75% loss on its nominal equity stake but more than makes up in transaction fees.
The TALF portion takes a 75% loss with no recourse and no margin to fall back on.
As
a result Bank X takes no writedown now, and in 5 years may book an
equity profit of as much as $25 million (net of transaction fees paid
to the Hedge Fund X), while Hedge Fund X books a profit of $3.2 million
for one day's work...
Meanwhile the taxpayers is screwed, yet again.......
posted by
Corbin_Dallas
on
March 24, 2009
at
4:19 AM
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reply
Let everything collapse...
posted by
Kayzzaman
on
March 23, 2009
at
9:40 PM
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Seems as if they will try to force the fat lady to sing.
posted by
callista22001
on
March 23, 2009
at
9:17 PM
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