Geithner's Proposed Looting of America
Tim tells us that the actual value of a toxic asset is unknowable. To allow the banks to dump these duds, he proposes to set prices for them by asset class at a level satisfying the sellers.
Since buyers might find the toxic asset prices too high, Geithner wants the taxpayer to subsidize the buyer's bid up to the seller's price.
The individual bank can sell the asset to the highest bidder including other banks.
From the announcement of this news, the stock market jumped 1300 points in a few days.
Why?
Insiders know that Geithner is working the big con on the taxpayers. The actual value of a toxic asset is known. It is itemized on the "LOAN TAPES". These are the computerized records of the bundles of assets. The banks update these bundles, as some of the loans contained in a bundle remain active receiving payments.
Potential institutional buyers will examine the LOAN TAPES to determine their bids. Since most bids will be substantially below the established asset selling price, the taxpayers will be defrauded of $billions if not $trillions.
In any form taken Geithner's big swindle will not help the economy recover. It will reduce the funds for the fiscal stimulus. The toxic assets continue only in a new portfolio.
Surprise! Surprise!
The US government is in the bag. My apologies to Tim, all of them are in on it.
