rortybomb.wordpress.com - 3/26/2009
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I want to explain the Geithner Put for those without a finance background who want to understand how FDIC is going to get looted. (Warning: Will contain graphs, and be long and boring even by normal standards here.) Recap: Banks have “toxic waste” assets, which they want to sell. [...]
eschatonblog.com - 3/24/2009
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eschatonblog.com —
Stiglitz: The U.S. government is basically using the
taxpayer to guarantee against downside risk on the value...
of these assets, while giving the upside, or potential profits, to private investors, he said. "Quite frankly, this amounts to robbery of ...
(more)
Robbery
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Stunning, and stunningly long
INSTAPUTZ —
If you want to see the best, almost-in-plain-English explanation of the economic rationale (or total lack thereof) behind the toxic asset repurchase program, clear 20 minutes from your schedule and read this. ...
From Insurance to Kleptocracy, with Graphics
Angry Bear —
Via Instaputz, an explanation of why stealing tax dollars in order to decouple securities from the assets they are allegedly securitizing is A Really Stupid Idea, presented directly, yet also in a way an econometrician wiill understand. ...
Looting the FDIC
The Glittering Eye —
Don’t miss the post from Rortybomb explaining how the Geithner Plan will be gamed to loot the FDIC:
If you think that all these subprime loans are essentially good, with a few stray bad ones in there, then this is a great deal for taxpayers. This would be surprising, since nobody wants to go near these things. If you think that these subprime loans are shit, and there will only be a few good ones in there, then we are essentially transferring money to banks and hedge funds straight out of FDIC.
Lame
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