Monday, March 23, 2009

It is roll time for Geithner

Today, even before the WHOLE PLAN is revealed, we finally get to see Treasury's Bank Rescue plan.

This plan is about all the toxic assets or bad mortgage paper on many of these banks books. Even though the government has already pumped billions into these banks, many are still in great financial strife and are not lending to consumers.

This is a double edge sword for me. I know, realistically that something has to be done to save the financial system in this country. I know if we don't and listen to hacks like morning joe or joke, do nothing that banks in the country will fall harder than we ever knew. On the other hand, I don't like giving these banks, the AIGs, and even the automotive industry a dime. These companies have board of directors, CEOs, CFOs, Executive Directors, all who are in charge of making decisions for their companies. Along with making decisions, they are also responsible for the direction of their companies, along with taking financial risk. Their risk, lack of forecast, and utter greed in the end took their companies down to come banging on the taxpayers door. I don't like it not one iota.

President Barack Obama is between a rock and a hard place. He is damned if he do, damned if he don't. That is the reality. Barack Obama was not elected to NOT DO anything, he was elected to DO SOMETHING. I am a Barack Obama supporter, but I call it like I see it with him. He is a politician first, no doubt about it. And let's talk about the mountainous of problems left from the last administration. First and foremost the economic mess. The Bush Administration turned a deaf ear and eye to the continuous job loss, the crumbling housing market, the instability of the markets, and the fright of the "R" word for recession. They left that. What is happening now, happened on Bush's watch and since last summer has escalated in this country. That is the reality. Bush could not get away from the kleeg lights fast enough.

Lastly, all this concerned trolling on these cable chatter shows is ridiculous. The stimulus package and the unveiled Geithner plan for banks have not even hit the ground running, yet, and you have these doomsday analysts declaring failure. I have not heard one word, looked at a plan, heard anything from the leaders of the Republican party except their continuous "more tax cuts" that will get us out of this financial mess. The other side has offered NOTHING, ZERO, NADA, on how to fix this. These same folks have zero credibility in any criticism here. These same folks gave Bush a blank check to spend this country into the demise we are at now. So, yes, they have a right to be critical but the criticism needs to come after a plan is implemented not before. And morning joke, well, you get what I mean. He continues to perpetrate gloom and doom, but will be the first to turn around and say, "Gee, maybe we did not understand or know what we are talking about." And he is getting, "How much a year to spout that great analysis?" You feel me?

On Monday morning at 8:45 a.m., the Treasury Department announces its long-delayed bank rescue plan, a three-pronged approach which involves, according to Reuters:

1) Low-interest loans to private investors to buy up banks' bad assets.

2) A public-private fund, run by fund managers, to invest in troubled mortgages, "with government capital matching private capital contributions"

3) The Federal Reserve will enlarge the $1 trillion TALF (Term Asset-Backed Securities Loan Facility) to buy assets "weighing on bank balance sheets."

Collaboration with the private sector is a key element of the bank-rescue plan, according to the Wall Street Journal:

Treasury Secretary Timothy Geithner said the only way to resolve the financial crisis is to work with the private sector to remove troubled assets clogging banks' balance sheets, even at a time when Wall Street moneymakers are being vilified by the public and politicians.

In an interview with The Wall Street Journal Sunday, Mr. Geithner said the government cannot do this alone. "Our judgment is that the best way to get through this is if we can work with the markets," he said. "We don't want the government to assume all the risk. We want the private sector to work with us."


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