- The Spanish leading the way?: Spain bails out first bank in 16 years
- Geithner suggesting a similar outcome in the US?
The key line from Geithner:
“Some banks are going to need some large amounts of assistance,” he said yesterday on the ABC News program “This Week.”
These "large amounts of assistance" would be on top of the new PPP, folks.
If only we'd get this over with sooner rather than later, per Mr Wolf. Alas.
Devastating video:
Speaking of the PPP, if you have 12 minutes to spare you must watch this video, which demonstrates how banks will make a killing - and taxpayers take a bath - by forming shell companies to buy toxic assets from themselves at full price yet only risk 7 cents on the dollar: YouTube - Geithner Plan II ("The problem of banks buying assets from themselves")
Stick with it the whole twelve minutes - the last three are priceless, in a manner of speaking (from the Khan Academy http://www.khanacademy.org/ , which I'd not heard of until today, but will for sure be following in the future...my bad on that one)
Should this scheme take place - and the case for it from the bank POV is, ummmm, compelling - expect another round of populist anger. Just one far more justified than the AIG bonus fiasco, since this time taxpayers will be hosed to the tune of $800 billion+, not a mere $160 million.
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