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IBDvalueinvestin (98.36)

Only one winner with Toxic Assets plan



March 23, 2009 – Comments (3)

The people that will benefit the most are not necessarily the banks but those firms buying the assets. Why, because the government will be assuming majority of the risk.

Firms like BX,  RJF, BLK, WDR, STT, GS, MS,  will benefit by assuming little risk to buy the assets.

Sounds Draconian to me.

Thats why you see big gains in these stocks above today, because they will be getting Christmas presents from the Government in this year.


The Losers:

#1 Banks

#2 FED.

#3 American Tax payers.

3 Comments – Post Your Own

#1) On March 23, 2009 at 4:36 PM, Varchild2008 (84.15) wrote:

Banks as losers?  Not really in terms of the Housing Market coming alive out of all of this toxic waste buying coming off the banks balance sheets.

The idea here is that Banks will be more readily able to hand out mortgages and banks will get huge profits off these mortgages (if and only if) they are handed out to good customers with good credit scores.

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#2) On March 23, 2009 at 4:48 PM, gne1963 (74.35) wrote:

On the other hand, these are long term investments. Given time these assets could become quite valuable.">Turning Toxic Assets Into Gold

In that case the winners are the tax payer and the investors...and the banks lose.

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#3) On March 23, 2009 at 4:55 PM, SuperPicks (28.27) wrote:

Twisted post, current plan's verbage allows banks to bid up prices at the very least indirectly (if not directly) on their own assets.

Look at the market ticker post from today. 

Or look at Alstry's blog post from today. 

Simple arbitrage with government authority. 

This is THE bailout of bailouts for big banks & THE end of middleclass (as we've known it) for US, Europe, & Japan. 

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