Tuesday Market Mover: TARP 2…Son of TARP!!!!!

Just when you thought it was safe to go back in the markets…

T-T-T-TARRRRP!!!!

Geithner to announce details of the Administration’s plans for the second tranche of TARP funds- 350 billion, and how they will be  utilized to address the financial system and housing…we hear, see MM, a last minute addition to the Senate stimulus bill contains a provision giving an additional 50b to Treasury for MoMods, so  that plus 50b from tarp tranche 2 would get them to the previously floated 100b for housing figure, I have my fingers crossed

MiM will cover it LIVE

Fox:

TARP-2, as it is called, is the second installment of the Trouble Assets Relief Program passed by Congress in October. That legislation aimed to pass out cash to get the credit markets — frozen from bad housing debts — moving again.

But after the first $350 billion was doled out with virtually no oversight, the Obama administration said it is going to make sure rules are in place to keep the banks from wasting the government credit.

If it works, it should get credit moving again so people can buy homes and cars and start using credit cards. But if it doesn’t, it means taxpayers could be stuck with billions of losses on failed loans.

TARP 2 also plans to put $100 billion into helping homeowners facing foreclosure and it is likely to contain a means to “rope off” toxic assets from other, more stable loans using a delicate balance between taxpayer and private funds.

ON “FOX News Sunday,” National Economic Council Chairman Larry Summers said the goal is for the government to offer incentives to the private sector to make it more appealing to buy bad debt.

-snip-

This may not be the last of the government bailouts, however. Mark Zandi, chief economist at Moodyseconomy.com, said he thinks the White House will need to ask for another $350 billion down the road.

February 9, 2009. Tags: , , , , . Cabinet, CITI, citigroup, Economy, FDIC, Film, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Unemployment Statistics, Wall St. 3 comments.

Stimulus Update: Bill Proceeds 61-36, final Senate vote tomorrow

Senate votes to end debate on Stimulus 61-36

This means the final vote can be held tomorrow in the Senate and it will likely pass

February 9, 2009. Tags: , , , . Economy, Obama Administration, Politics. 1 comment.

PIMCO’s Gross: Mortgage rates will hit 4.5%…

VIDEO here, well worth watching

WooHoo to that news, (right now the 10 yr has moved up over 3% again) from CNBC:

Government action to shore up the economy and improve the housing climate probably will send mortgage rates to 4.5 percent, Bill Gross, co-CEO at the Pimco bond fund, said Monday.

-snip-

“I think at some point we’re going to see a 4.5 percent mortgage rate and the 10-year Treasury rate capped at some level,” he said. “When the Fed comes in to buy Treasurys that will be a big day.”

Looking ahead at the government initiatives he expects to see in an announcement Tuesday, Gross said the government likely will inject more capital into needy banks only. He also said the government will expand the Term Asset-Backed Securities Loan Facility, or TALF, which aims to free up the ABS market….

“We need a clear plan tomorrow that moves away from nationalization, and private capital will come in,” Gross said….

February 9, 2009. Tags: , , , , , , , . CITI, Economy, FDIC, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 1 comment.

Stimulus Update: Reach Out and Touch Someone….

call your Congress Critters!

dont cut education!!

To say GET EDUCATION BACK IN THE BILL call these fools:

Your Congress Critter, email them here

Your Congress Critter in the House call them here

(more…)

February 9, 2009. Tags: , , , , , , , , , . Department of Education, Economy, Film, Foreclosures, Music, Obama Administration, Politics, Popular Culture. Comments off.

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