SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Bill Wexler's Trading Cabana
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bill Wexler who wrote (4265)10/4/2008 8:15:16 PM
From: RockyBalboa   of 6370
 
The bailout package has one very dark agenda. I just completed reading the latest "Dear Investors" from Cerberus, and it more or less states the obvious.

This is what Paulson & Co. is doing:

...

The Fed allowing Morgan Stanley and Goldman Sachs to become bank holding companies will also help stabilize the financial system but again will create a large amount of assets for sale as these companies, which have huge amounts of leverage, need to meet the significantly lower leverage ratios required for banks.

...

The bailout plan will enable the (weaker) financial institutions to sell more of their (problem) assets to the government without tipping themselves over and the government will ultimately sell these assets (again)

What a coincidence. Combine that with the idea that the fed is not allowed buying (depreciated) assets above book.
Therefore, the best they can do is to buy Goldman´s Level 3 assets exactly at book. Now, assets of this kind will have a good price everywhere; voila!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News