tag:blogger.com,1999:blog-4863014635257598503.post8346476634396572662..comments2024-02-27T22:18:53.706-05:00Comments on Zero Hedge: Geithner = Paulson v2Tyler Durdenhttp://www.blogger.com/profile/00165439451205639523noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-4863014635257598503.post-32957773195072311292009-02-11T02:36:00.000-05:002009-02-11T02:36:00.000-05:00first of all, cheers to tyler for the blog.in 4 da...first of all, cheers to tyler for the blog.<BR/><BR/>in 4 days since discoverin, it's become essential readin...just what a meister glassbeadian without a bloomberg was wishin for -- inside info w/ eagle eyes & a nose for nastiness.<BR/><BR/>i second broken's measurement of TurboTimmy's rope. it seems like the barge is turnin slowly but seemingly perceptibly. <BR/><BR/>the only question is whether that massive iceberg hit (yeah we all know the one) caused enough damage to sink the ship before shore is reached.<BR/><BR/>and whether the wizard of O (pay no attention to the man behind the curtain) makes a good skipper even when benny blowhard & leisure larry is shovelin buckets of agua onto the deck for shoots & googles.<BR/><BR/>megots the lifevest on for sure & feel grateful that me mum bought me them swimming lessons as a yute.<BR/><BR/>no matter what, got give them props for the auspicious timing of the dow drop right on the money for the T auctions.<BR/><BR/>yo-yong-ding-dongAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4863014635257598503.post-21192054106621377692009-02-11T00:28:00.000-05:002009-02-11T00:28:00.000-05:00Tyler,While I'm much more sanguine on Geithner tha...Tyler,<BR/><BR/>While I'm much more sanguine on Geithner than you are, I definitely agree that the TALF is going to dump a shitload of risk on taxpayers. The ABS market isn't for the faint-of-heart, so the Treasury and the Fed need to be careful what they wish for. The Treasury/Fed wants ABS backed by SBA-guaranteed 7(a) loans (now with the guarantee pumped up to 90%)? Are you effing kidding me? Section 7(a) loans are only available to businesses that <I>can't get financing elsewhere</I>. And when the Fed takes losses on those ABS (and it <I>will</I> take losses, even with the haircuts), the SBA -- by which I mean taxpayers -- are the ones who will have to cover the Fed's losses. Yeah, I feel better already.<BR/><BR/>Every time a governmental entity wades into the ABS market, they get royally screwed. The Fed is more sophisticated than the municipalities and school boards I've seen get swindled in the past, but it's not <I>that</I> sophisticated. And the Fed is just relying on the rating agencies -- perhaps the biggest suckers in the history of financial markets.<BR/><BR/>I actually think the TALF will have a big impact on credit markets, but at great risk to taxpayers. It may or may not be worth the risk in the long-run. We'll have to see.<BR/><BR/>I'll structure whatever ABS my clients want me to; I just hope the Fed and Treasury know what they're getting themselves into. As they say, "here there be Dragons."Economics of Contempthttps://www.blogger.com/profile/17251622598490403638noreply@blogger.comtag:blogger.com,1999:blog-4863014635257598503.post-22840759213608217882009-02-10T21:45:00.000-05:002009-02-10T21:45:00.000-05:00This market got way ahead of itself and was going ...This market got way ahead of itself and was going to correct anyway. We can blame Geithner, but anybody who that he was going to pull a rabbit out of his hat has been borrowing Phelp's bong.<BR/><BR/>I think Obama will give Geithner some rope, either to make progress or hang himself. It has been less than three weeks. <BR/><BR/>Looking into that balance sheets of the big banks is a necessary step, otherwise any plan is driving blind. If many of the bigs are seriously insolvent, I see more radical solutions being proposed, such as the Swedish plan.<BR/><BR/>However, Wall Street isn't ready (yet) to go radical and it isn't feasible politically until we see just how bad off these banks really are.Anonymousnoreply@blogger.com