bad bank plan?

[BGinRB]

Lending rules are not strict enough as they are today.

A couple of guys I know took FHA over the past 6 months. I would not willingly lent my money to those guys at the given rate, with the given collateral. So, the government taxed me (or borrowed using my future productivity as a collateral) to give my friends the loans they got. Awesome, because that worked so well over the past several years 🙂

[davelj]

This plan will only help in that it’s raising the floor to which prices ultimately fall. There’s no way in hell that ANY plan is going to keep home prices from declining back down to “trend” – that is, where prices are back to their historical relationship with incomes and rents. And I think the Officialdom knows this (despite occasional silly public commentary to the contrary). What they’re trying to do is limit the degree of over-correction. And all of these measures collectively will help in that regard, although the degree to which they help obviously won’t be known for a few years. And I’m sure there will be unpleasant unintentional consequences as well.

[davelj]

This plan will only help in that it’s raising the floor to which prices ultimately fall. There’s no way in hell that ANY plan is going to keep home prices from declining back down to “trend” – that is, where prices are back to their historical relationship with incomes and rents. And I think the Officialdom knows this (despite occasional silly public commentary to the contrary). What they’re trying to do is limit the degree of over-correction. And all of these measures collectively will help in that regard, although the degree to which they help obviously won’t be known for a few years. And I’m sure there will be unpleasant unintentional consequences as well.

[davelj]

This plan will only help in that it’s raising the floor to which prices ultimately fall. There’s no way in hell that ANY plan is going to keep home prices from declining back down to “trend” – that is, where prices are back to their historical relationship with incomes and rents. And I think the Officialdom knows this (despite occasional silly public commentary to the contrary). What they’re trying to do is limit the degree of over-correction. And all of these measures collectively will help in that regard, although the degree to which they help obviously won’t be known for a few years. And I’m sure there will be unpleasant unintentional consequences as well.

[davelj]

This plan will only help in that it’s raising the floor to which prices ultimately fall. There’s no way in hell that ANY plan is going to keep home prices from declining back down to “trend” – that is, where prices are back to their historical relationship with incomes and rents. And I think the Officialdom knows this (despite occasional silly public commentary to the contrary). What they’re trying to do is limit the degree of over-correction. And all of these measures collectively will help in that regard, although the degree to which they help obviously won’t be known for a few years. And I’m sure there will be unpleasant unintentional consequences as well.

[davelj]

This plan will only help in that it’s raising the floor to which prices ultimately fall. There’s no way in hell that ANY plan is going to keep home prices from declining back down to “trend” – that is, where prices are back to their historical relationship with incomes and rents. And I think the Officialdom knows this (despite occasional silly public commentary to the contrary). What they’re trying to do is limit the degree of over-correction. And all of these measures collectively will help in that regard, although the degree to which they help obviously won’t be known for a few years. And I’m sure there will be unpleasant unintentional consequences as well.

[DWCAP]

I just wanna know how Obama’s TARP plan is different than Bush’s original TARP plan. No one is using the words Troubled Assest Releaf Plan anymore, but how is this one different? Other than the Bush’s was $750billion and Obama’s is $1Trillion.

Were gonna use private money too, yada yada yada. I was totally unaware that there was so much private money just sitting out there looking to buy morgage backed securities and that banks were ok letting them go at the very reduced prices, cementing their losses. Why werent they doing this on their own?

(I didnt read the details today, havent got a chance yet, but I am hoping to use some pigg readers as a filter and find some real nitty gritty about this stuff instead of a fluffer piece written directly from the press release.)

[DWCAP]

I just wanna know how Obama’s TARP plan is different than Bush’s original TARP plan. No one is using the words Troubled Assest Releaf Plan anymore, but how is this one different? Other than the Bush’s was $750billion and Obama’s is $1Trillion.

Were gonna use private money too, yada yada yada. I was totally unaware that there was so much private money just sitting out there looking to buy morgage backed securities and that banks were ok letting them go at the very reduced prices, cementing their losses. Why werent they doing this on their own?

(I didnt read the details today, havent got a chance yet, but I am hoping to use some pigg readers as a filter and find some real nitty gritty about this stuff instead of a fluffer piece written directly from the press release.)

[DWCAP]

I just wanna know how Obama’s TARP plan is different than Bush’s original TARP plan. No one is using the words Troubled Assest Releaf Plan anymore, but how is this one different? Other than the Bush’s was $750billion and Obama’s is $1Trillion.

Were gonna use private money too, yada yada yada. I was totally unaware that there was so much private money just sitting out there looking to buy morgage backed securities and that banks were ok letting them go at the very reduced prices, cementing their losses. Why werent they doing this on their own?

(I didnt read the details today, havent got a chance yet, but I am hoping to use some pigg readers as a filter and find some real nitty gritty about this stuff instead of a fluffer piece written directly from the press release.)

[DWCAP]

I just wanna know how Obama’s TARP plan is different than Bush’s original TARP plan. No one is using the words Troubled Assest Releaf Plan anymore, but how is this one different? Other than the Bush’s was $750billion and Obama’s is $1Trillion.

Were gonna use private money too, yada yada yada. I was totally unaware that there was so much private money just sitting out there looking to buy morgage backed securities and that banks were ok letting them go at the very reduced prices, cementing their losses. Why werent they doing this on their own?

(I didnt read the details today, havent got a chance yet, but I am hoping to use some pigg readers as a filter and find some real nitty gritty about this stuff instead of a fluffer piece written directly from the press release.)

[DWCAP]

I just wanna know how Obama’s TARP plan is different than Bush’s original TARP plan. No one is using the words Troubled Assest Releaf Plan anymore, but how is this one different? Other than the Bush’s was $750billion and Obama’s is $1Trillion.

Were gonna use private money too, yada yada yada. I was totally unaware that there was so much private money just sitting out there looking to buy morgage backed securities and that banks were ok letting them go at the very reduced prices, cementing their losses. Why werent they doing this on their own?

(I didnt read the details today, havent got a chance yet, but I am hoping to use some pigg readers as a filter and find some real nitty gritty about this stuff instead of a fluffer piece written directly from the press release.)

[DWCAP]

Well alittle more research into it and as I expected there is no real difference. It is TARP redux, cept this time it is bigger and badder cause it is 33% bigger and private equity is gonna join. I am guessing that they will manage these for the GOV for a fee too, and sure enough in a year or two they will make money no matter what happens. Really “sharing the losses”.

“Geithner and Bernanke clearly do not understand the problem. The reality is are few credit worthy borrowers to lend to and therefore no reason for banks to lend. Moreover, with rampant overcapacity and a slowing economy there is no good reason for credit worthy borrowers to borrow.”-Mish

Atleast someone understands.
http://globaleconomicanalysis.blogspot.com/2009/03/geithners-galling-and-dangerous-plan.html

[DWCAP]

Well alittle more research into it and as I expected there is no real difference. It is TARP redux, cept this time it is bigger and badder cause it is 33% bigger and private equity is gonna join. I am guessing that they will manage these for the GOV for a fee too, and sure enough in a year or two they will make money no matter what happens. Really “sharing the losses”.

“Geithner and Bernanke clearly do not understand the problem. The reality is are few credit worthy borrowers to lend to and therefore no reason for banks to lend. Moreover, with rampant overcapacity and a slowing economy there is no good reason for credit worthy borrowers to borrow.”-Mish

Atleast someone understands.
http://globaleconomicanalysis.blogspot.com/2009/03/geithners-galling-and-dangerous-plan.html

[DWCAP]

Well alittle more research into it and as I expected there is no real difference. It is TARP redux, cept this time it is bigger and badder cause it is 33% bigger and private equity is gonna join. I am guessing that they will manage these for the GOV for a fee too, and sure enough in a year or two they will make money no matter what happens. Really “sharing the losses”.

“Geithner and Bernanke clearly do not understand the problem. The reality is are few credit worthy borrowers to lend to and therefore no reason for banks to lend. Moreover, with rampant overcapacity and a slowing economy there is no good reason for credit worthy borrowers to borrow.”-Mish

Atleast someone understands.
http://globaleconomicanalysis.blogspot.com/2009/03/geithners-galling-and-dangerous-plan.html

[DWCAP]

Well alittle more research into it and as I expected there is no real difference. It is TARP redux, cept this time it is bigger and badder cause it is 33% bigger and private equity is gonna join. I am guessing that they will manage these for the GOV for a fee too, and sure enough in a year or two they will make money no matter what happens. Really “sharing the losses”.

“Geithner and Bernanke clearly do not understand the problem. The reality is are few credit worthy borrowers to lend to and therefore no reason for banks to lend. Moreover, with rampant overcapacity and a slowing economy there is no good reason for credit worthy borrowers to borrow.”-Mish

Atleast someone understands.
http://globaleconomicanalysis.blogspot.com/2009/03/geithners-galling-and-dangerous-plan.html

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