Finally we might get some movement on solving the bank and mortgage mess! It is about time. I've always said if the problem is really bad loans then get them out of the system and everything will be fine.Now we here that's exactly what might happen. New Tres. Sec., Timothy Gheithner has suggested the creation of a 'bad bank'. This bank would be an aggregator used to accumulate the loans that are in default, essentially removing them from banks books and getting them out of the system.
This 'bad bank' would absorb all of the delinquent assets and turn our banks back into 'good banks' again! Stupendous. But wait, here's the ugly part, there's not enough money left in the TARP fund to buy all the bad loans.
The answer might be to seek investment capital from the private sector. With enough government guarantees on returns, that money might come flowing in fast and furious. However, the real ugly part would be if the American tax payer were to be burdened further with those guarantees.
For now all we can do is take a wait and see stance on this. This is the most logical decision to be made by the Treasury since this whole thing started over two years ago.
Let's hope Timothy 'the dodger' Geithner is right. I think he is, it's what the economist I follow have been saying for a while ....and they are all conservatives so maybe they all got it right this time.
What? 'the dodger' comment above? What's that all about? Sorry, it's just my swipe at yet another Obama appointment where the appointee had a tax problem....but that's a subject for another blog isn't it.
Sorry, back to the subject at hand. If the Secretary of Tresury is correct on this one, the fix could be in and we might see our economy improve as early as the 4th quarter of this year.
But the recovery may still be blunted if the Democrats are successfully in Porking America again with this huge, over inflated, pork barrel, pig belly so called stimulus package. Again, we will all just have to wait and see.....zzzzz.....zzzzz..... Somebody wake me up when this nightmare is over please! ;-)
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OK first off the news that this country is on the brink of disaster is ridiculous. Yes we are in a slump however what is happening is we are caught in this self sustained spiral. The media market scares the consumers to death and everyone goes into savings mode when what the country needs is for people to spend. Well while the consumers are saving the corporations are falling like flys laying people off and broadcasting these horrible dividend reports. Which in turn gives the media more fuel to scare the consumers into saving more and perpetuating the spiral.
The stimulus plan is a great way for the democrats to get pork through. They have been trying to get these policys inacted for years but now they have a way to inact them and look like heros. Do people not understand that the money they are giving to us they are taking from us? It falls back on the old creedo of a person is smart but a group of people are dumb, panicky animals. This whole problem could be solved simply by the "Bad Bank" idea and just positive incentives to spend and news to consumers that we are not on the edge of a disaster as our president as said just this week ridiculous.(by the way i thought republicans were suppose to be the ones that used fear)
The unemployment rate is 7.6% if i remember correctly it was right at 8% in the early 90's we survived that i think. The unemployment rate in the 1980's was between 10 and 10.5% we survived that. If you are a leader stand up and lead us tell us how to break out of this don't just try to scare us and tell us the economy is in the worst shape since the great depression it's not. It's not even close.
Right now people do not know what to think they come home from work and they see chicken little running around saying the sky is falling but then they look at there savings account and say well we are alright. Inflation is not an issue at present if we just got up and went about our daily lives these large company's would not be failing and we would not be advancing the company that we work for's need to lay us off. I don't know maybe i am just a simpleton!
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