High Noon for Financial System….
(Classic Clip Courtesy of TheThinWoman)
Gary Cooper would know just what to do in this crisis….
Turbo Tax Tim to lay out the BOLD! FRESH! NEW! plan to save the financial system at noon EST on Monday:
CNBC: In a noon news conference, Geithner will lay out a “strategy to strengthen our economy by getting credit flowing again to families and businesses,” the Treasury said. The plan will include an aid package for the banking industry, according to a well-informed source.
According to the source, the banking component will be “smaller” than originally expected, include some “bad bank” component but be centered around government guarantees and insurance of troubled assets—what’s called a “ring fence” concept.
But what of H-O-U-S-I-N-G? Well like PREGO, they say it’s in there:
The government is also known to be working on a group of measures to aid small business and consumers, including programs to support the housing market—from interest-rate subsidies to home foreclosure relief. Those subjects, as well as new rules on transparency for firms receiving government aid, have been discussed in the last week, according to a source.
CNBC reported Friday that sources say a foreclosure component will be included in Monday’s announcement.
So the good news is they’re making a move, the bad news is IOO (in our opinion) TARP Deux will fail to work as ir is not adequately funded and the PORKBUSTING STIMULUS FROM HELL (Now without education!!) has left ZERO POLITICAL CAPITAL OR WILL to get more funding for TARP two..
MiM predicts, we will be back needing more money in a few months at most…the PLAN 9 FROM OUTER SPACE, oops, Newly Improved Nifty Plan from ‘Turbo Tax’ Tim and the ‘Abercrombie n Fitch’ Team Obama Crew is to use the FED to fund this recap of the banks and asset transfer to the FEDs balance sheet to avoid going through Congress..
But if the HOLC is not a HOLC, and based on Schumers railing against refis for all at 4% it is not a HOLC, then it will not put a sufficient floor under the housing assets and the values will keep dropping leading to a crisis on the FEDS balance sheet instead of the banks’..is that where we want to go?
The over leveraging of the financial instituttions was an utter disaster so we have decided to overleverage the Federal Reserve? …..Things that make you go, OH NOES!!!
I am going to draw my focus down to my immediate financial situation now cause the government is all ‘gone wild’, like late night tv commercials during a Star Trek marathon at this point; but to quote my favorite childhood film, ‘I have a baaaad feeling about this’…