Author Topic: DOW up 497 points today - Obama's Plan met with glee from Wall Street  (Read 845 times)

240 is Back

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Essentially, a private investor comes in with $25k.

The govt matches it with $25k.

it's covered with $300k of FDIC insurance.



Big bounce today on this news.  Liberals are screaming about this deal, they hate it.

headhuntersix

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #1 on: March 23, 2009, 04:07:09 PM »
Its a plan..not sure it will work but Timmy finally got something on paper.
L

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #2 on: March 23, 2009, 04:11:45 PM »
If the private businesses make profit, the govt sees the same profit from it. 

interesting concept.  Almost like a 50% tax on those who choose to buy into it.  If the guys on wall street are smart enough to make a killing by buying toxic assets (which they are), the govt makes a profit.  And the banks will then see a nice pile of $ in their coffers, so they can lend again.

Instead of the govt trying to solve the probs, they are partnering with private business.  They are gonna come back into the market - the govt has their back and they are partners.

Only $1tril of toxic assets are involved here.  All of the investors and banks don't see this as an answer - but - wall street loves it on day 1.  Will the surge last?

Hedgehog

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #3 on: March 23, 2009, 04:13:54 PM »
I'm sure you'll have the usual anti-Obamaites bitching about the deal regardless.

I think Geithner really needs to present a real plan where the government will step in with much more force in the banks - got to clean out the boards from those who are incompetent.
Fill the banks with non-tarnished board professionals.
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headhuntersix

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #4 on: March 23, 2009, 04:15:33 PM »
Krugman said it would fail...is he an anti-Obama guy.
L

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #5 on: March 23, 2009, 04:33:43 PM »
this plan embraces the fact that there are a thousand guys on wall street who are always going to outsmart the system in about 5 minutes.

the govt partners with them, and when they make a million bucks, 500k of it goes to the govt.  All parties agree up front, so there's no socialist talk - you agree to partner with the USA, and if you win, we win.  if you lose, they cover up to 300k of your losses.

Remarkably simple, and everyone wins.

240 is Back

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #6 on: March 23, 2009, 04:37:44 PM »
I'm sure you'll have the usual anti-Obamaites bitching about the deal regardless.

I think Geithner really needs to present a real plan where the government will step in with much more force in the banks - got to clean out the boards from those who are incompetent.
Fill the banks with non-tarnished board professionals.

the beauty of this plan is that those tarnished professionals know a LOT more about the system than obama and geitner do.  And kicking them out of the system means they'll just buy from the outside and short everything until the market dies and they cash out in Euros.

This plan says "We can't tax you guys, and we can't topple the banks because we need them.  So, we're joining them - giving them some assurance, but letting them put their OWN money up.  if you choose to buy the assets and they do well (and yes, wall steet guys know these assets better than Obama does), then the govt starts getting some $ back.


Thoughts?  Is this a good or bad plan? 

stormshadow

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #7 on: March 23, 2009, 05:25:38 PM »
the beauty of this plan is that those tarnished professionals know a LOT more about the system than obama and geitner do.  And kicking them out of the system means they'll just buy from the outside and short everything until the market dies and they cash out in Euros.

This plan says "We can't tax you guys, and we can't topple the banks because we need them.  So, we're joining them - giving them some assurance, but letting them put their OWN money up.  if you choose to buy the assets and they do well (and yes, wall steet guys know these assets better than Obama does), then the govt starts getting some $ back.


Thoughts?  Is this a good or bad plan? 

The assets are garbage.  The 300k insurance is just another moral hazard created by government.

Hedgehog

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #8 on: March 23, 2009, 06:13:48 PM »
It's just half-assing everything.

Seems like Geithner has no balls and is totally in bed with Wall Street.
Geithner has to move to take over the bad banks - can't allow them to be run by the same people who got them into trouble.
I'm all with Krugman on this one.
He's made a very good impression IMHO - he's being independent and sticks to his own ideas. 
Unlike certain members on this board who either hail (MattT) or bash(Coach, James) Obama regardless of what Obama does.
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Hugo Chavez

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #9 on: March 23, 2009, 07:32:22 PM »
Krugman said it would fail...is he an anti-Obama guy.
he's been off and on.  He'll support something he does and turn on the next thing.

Hedgehog

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #10 on: March 24, 2009, 03:49:43 AM »
he's been off and on.  He'll support something he does and turn on the next thing.
He's not a mindless drone who'll blindly cheer anything Obama or anyone does.
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LurkerNoMore

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #11 on: March 24, 2009, 10:09:23 AM »
When the DOW is up, the Obama haters are quiet.  When it is down, they whine in full force.  See a pattern here?

a_joker10

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Re: DOW up 497 points today - Obama's Plan met with glee from Wall Street
« Reply #12 on: March 24, 2009, 10:24:46 AM »
No worries look at the dollar.

The view of the Dow without currency trading sure looks good.

However in the last week the dollar has depreciated by 10% against the Euro.

This wipes out any gains for European companies or investors.

Since the US keeps printing money the USD is only going to get weaker.
Z