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IBDvalueinvestin (98.62)

The Winners of the Toxic Asset plan



March 24, 2009 – Comments (2)

The Winners of the Toxic Asset plan

March 24, 2009 

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 and today that will ring true as the banks retrace gains made yesterday while the firms below continue the rally.

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

Sounds Draconian to me but in this world there are winners and losers and nothing in between.


The Losers:

#1 Banks

#2 FED.

#3 American Tax payers.

2 Comments – Post Your Own

#1) On March 24, 2009 at 9:24 AM, IBDvalueinvestin (98.62) wrote:

Looks like the bulls will get their wish and re-instate the uptick rule.

But this is notgoing to prevent shorting, lmao at this news today:

U.S. Stock Exchanges Propose ‘Modified’ Uptick Rule to SEC

By Edgar Ortega

March 24 (Bloomberg) -- The three largest U.S. stock exchanges proposed a so-called modified uptick rule that would restrain short sales in stocks that have posted “precipitous” declines.

NYSE Euronext, Nasdaq OMX Group Inc. and Bats Exchange Inc. made their proposal in a joint letter today to the U.S. Securities and Exchange Commission. The SEC plans to meet next month to discuss reinstating the uptick rule, which was eliminated in 2007 and barred investors from betting against a stock until it sells at a higher price than the preceding trade.

To contact the reporter on this story: Edgar Ortega in New York at

Last Updated: March 24, 2009 08:29 EDT


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#2) On March 24, 2009 at 10:45 AM, floridabuilder2 (98.17) wrote:

ibdvaluing investing....  I put up a blog yesterday explaining the process... you are absolutely correct above on who the winners are and you can include me in the winners column...

as far as who the losers are that still has not been determined... read my blog and you will see why...  it is still not clear whether the banks will take the hit or the taxpayer will cover the bid ask spread....  the govt is not aware that the bid ask spread is still so large on so many toxic assets....  the plan is voluntary and again I address in my blog that the banks won't play where the bid ask spread is significant and that means the plan doesn't work for 80% of the toxic assets... only the best assets will get fleeced

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