Welcome to the Public-Private Investment Program. A new program that will provide funds for making a market in real-estate related loans from banks and securities from broader markets. Banks will have the ability, we read in de Wall Street Journal, to sell pools of loans to dedicated funds and investors will compete to have the ability to participate in those funds and take advantage of the financing provided by the government.
Another 500 bln USD (or more) is coming to the markets.
This plan is causing anger und unbelief from economic watchers.
The American government seems to support the idea that there are no bad assets only misunderstood assets.
Even better: private investors can participate with a small amount of their own money for getting in return large, non-recourse loans from the government to buy these assets.
Bottom line: it’s a lot of nonsense. We all know there is bad debt and bankers overplayed vastly their hand. What to do? Nationalize, wipe out shareholders, write off assets, put some people in jail, tweak rules and start again…
That’s the name of the game, dear friends…
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Another 500 bln USD (or more) is coming to the markets.
This plan is causing anger und unbelief from economic watchers.
The American government seems to support the idea that there are no bad assets only misunderstood assets.
Even better: private investors can participate with a small amount of their own money for getting in return large, non-recourse loans from the government to buy these assets.
Bottom line: it’s a lot of nonsense. We all know there is bad debt and bankers overplayed vastly their hand. What to do? Nationalize, wipe out shareholders, write off assets, put some people in jail, tweak rules and start again…
That’s the name of the game, dear friends…
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