March 23, 2009

And then as predicted here for years, we finally get RTC2. Now called PIC or the "Public Investment Corp". Hey, someone had to buy up Mozilo's trash


$1 trillion to get it off the ground.

Hey, that's chump change these days.

Remember, it hath been foretold.

Obammmmy Gimme Cheese!!!

Treasury's toxic asset plan could cost $1 trillion

WASHINGTON – The Obama administration's latest attempt to tackle the banking crisis and get loans flowing to families and businesses rely on a new government entity, the Public Investment Corp. to help purchase as much as $1 trillion in toxic assets on banks' books.

The plan that Treasury Secretary Timothy Geithner intends to announce Monday aims to use the resources of the $700 billion bank bailout fund, the Federal Reserve and the Federal Deposit Insurance Corp.

The initiative will seek to entice private investors, including big hedge funds, to participate by offering billions of dollars in low-interest loans to finance the purchases and also sharing risks if the assets fall further in value.

39 comments:

image009 said...

The fact that some of these AIG executives returned their bonuses because of death threats is actually very encouraging. It seems like if we can just get the right people fearing for their lives, maybe there will be some change I can believe in.

Anonymous said...

No matter. It's all good. We've hit bottom and are now on the slow road to recovery.

I just read that two posts back.

Mitesh Damania said...

Like anyone will stop them.

keith said...

FYI:

The Obama administration's plan to finance purchases of as much as $1 trillion in toxic assets from banks will include programs supported by the Treasury Department's bailout fund, the Federal Reserve and the Federal Deposit Insurance Corp. Here is a look at how they will operate.

--Public-Private Investment Program: The umbrella organization that will support the effort to entice private investors to join with the government to purchase troubled assets.

--Federal Deposit Insurance Corp.: The agency that insures deposits at the nation's banks would operate auctions of troubled mortgage loans and then provide financing to the winning bidders. The FDIC would also share the risks if the mortgages fell further in value.

--Term Asset-Backed Securities Loan Facility: A Federal Reserve-operated loan facility will receive $200 billion from the government's $700 billion bailout program. That money will enable the Fed to support as much as $1 trillion in loans to investors who want to buy securities backed by various types of consumer loans in an effort to make auto loans, credit card debt and student loans more available. The TALF will be expanded to allow the Fed to provide loans to investors buying securities backed by residential and commercial mortgages.

--Public-Private Investment Funds: The Treasury would launch these partnerships between the government and the private sector, with the government matching dollar-for-dollar money put up by private investors to buy toxic assets.

http://finance.yahoo.com/news/Toxic-asset-purchase-program-apf-14712027.html

Dogcrap Green said...

The only thing Obama is doing is challenging free interprise.

Soon the nurses will be social justice to the Doctor's life. the clerks will be social Justice to the Attorney's life. The casheir will live the life of the shop owner. and the share cropper will live in the farmer's house.

All these things happend under Castro. what Castro failed to mention was the Doctor had nothing. the Attornies were broke. The shop oowner went under, and the farm blew away.

Obama knows what his government will do to the country. He just doesn't care.

Wind Farmer said...

I prefer (vs PIC):
FUCU
Federal Universal Colossal Underwriting

Colossal as in the Colossal Sqluid:
Unlike the giant squid, whose arm and tentacles only have suckers lined with small teeth, the Colossal Squid's arms and tentacles are also equipped with sharp hooks: some swiveling, others three-pointed.

keith said...

I was hoping for PIG, since that's what this is - cleaning up after the hogs

DOPES 2 said...

HI FELLOW TOOLS!!!!

KWEEFER, I HAVE TO GIVE YOU PROPS FOR YOUR LACK OF CENSORSHIP!!!!

OTHER TOOLS SITES WILL ONLY POST COMMENTS WHEN IT SUPPORTS THEIR AGENDAS!!!!

YOU ALLOW ALL TOOLS, THINK NICK THE HELOC TOOL AND THE ANONS THAT DISAGREE OR HAVE AN ALTERNATIVE POSITION, TO POST HERE!!!!

I HAVE A VERY SICK FEELING ABOUT THIS WHOLE DEAL!!!!

GEITHNER AND ALL OF HIS TOOL CRONIES NEED TO JUST FALL OFF THE FACE OF THE EARTH!!!! THERE IS NO CHANGE!!!! SAME CRAP, DIFFERENT PILE!!!!

OH YEAH, LET US BUY $1 TRILLION IN CRAP ASSETS NOW SO THAT WHEN INFLATION HITS IT WILL BE WORTH $15 TRILLION!!!! GENIUS!!!!

NOBODY KNOWS WHERE TO GO NOW!!!! NOT EVEN THESE BROKER TOOLS THAT MANAGE TENS OF MILLIONS OF DOLLARS THAT "SERVICE" MY TAX CLIENTS!!!!

IT IS SOMEWHAT SAD TO HEAR PEOPLE IN THEIR 70S TELL ME THAT THEIR NESTEGGS HAVE LOST 50% - 70%!!!!

THEY TELL ME THE SAME THING, "IT HAPPENED SO FAST." YEAH, IT SURE DID, SO WHY WERE YOU IN STOCKS WHILE IN YOUR 70S???? EVER HERE OF BONDS?!?!?!?! CASH AND CASH EQUIVALENTS?!?!?!?! YOU ARE IN RETIREMENT, WHY ARE YOU STILL 90% IN STOCKS!!!!!!!!!!!!

IT SUCKS BECUASE I WANTED TO TELL THEM, JUST GET OUT OF THE MARKET AND ENJOY RETIREMENT, NO MORE STOCKS!!!! YOUR TIME TO MAKE THE MONEY HAS PASSED!!!! JUST ENJOY WHAT YOU HAVE!!!!

LAST YEAR OR TWO, COURTESY OF THE UNDERGROUND INFORMATION NETWORK (NEW TERM???? U.I.N.????), I SENSED THAT THIS WAS DUE, JUST LIKE A LOT OF YOU HERE, BUT COULD NOT OUTRIGHT TELL THEM TO SELL!!!!

I AM NOT A BROKER, CFA, OR ANY OTHER ABBREVIATION RELATED TO THE SECURITIES MARKETS!!!! I COULD NOT TELL THEM TO SELL W/O SERIOUS REPERCUSSIONS!!!!

HOWEVER, I DID CASUALLY TELL THEM, WHEN ASKED, THAT I DID NOT HAVE A "WARM FUZZY FEELING" ABOUT THE STATE OF THE ECONOMY AND THAT MY WIFE AND I HAD EXITED THE MARKET IN MARCH OF 2008!!!! WE STILL TOOK A 8% - 15% HIT ON WHAT WE HAVE SAVED!!!! ACTUALLY THE WORDS WERE CLOSER TO THE FOLLOWING: "MY WIFE AND I DO NOT OWN ANYTHING RIGHT NOW EXCEPT CASH!!!!"

I WAS TOLD BY SOME BROKERS, UP UNTIL OCTOBER - NOVEMBER 2008, "NOW IS A GOOD TIME TO BUY!!!! HURRY UP AND TELL CLIENT TO GET THEIR CURRENT YEAR RETIREMENT CONTRIBUTION FUNDED SO THEY CAN GET IN ON THE DIP!!!!"

GEE . . . IS THIS THE REAL ESTATE OR THE STOCK MARKET????

ANYWAY, I NEED TO BAIL, WORKING 7 DAYS A WEEK NOW UNTIL APRIL 15TH!!!!

THANKS FOR READING!!!!

DIMWIT!!!

HALFWITS!

NITWITS!!

TWITS!!!!

TOOLS!!!!

DOLTS!!!!

DOPES!!!!

Piggy Bank said...

in a pig's eye!
pig-headed
your room is a pig's sty
don't buy a pig in a poke
don't be a pig
piggy bank
piggyback ride
pig skin
pig Latin
as crooked as a pig's tail
as dirty as a pig
as fat as a pig
as happy as a dead pig in sunshine
as slick as a greased pig
bleeding like a stuck pig
Don't buy a pig in a poke.
He don't need it no more than a pig needs the New Testament.

BG said...

Hey, did anyone see Dateline NBC last night (Sunday, 3/22)? Chris Hansen, the guy who did the "To Catch a Predator" (how apropos), was stalking Angelo Mozilo, trying to get an interview with him. The program is called "Inside the Financial Fiasco" and they described from soup to nuts how all this shit happened. It was pretty good. The second part will be about the coming wave of credit card defaults. They will explore how America has been up to their eyeballs in debt using credit. I guess it's better late than never. Checkout the video if you missed it:
http://www.msnbc.msn.com/id/3032600/

John Stossel said...

Trying to solve a banking and debt crisis with more debt?! Give me break!

Anonymous said...

"...Obama knows what his government will do to the country..."

AS IF nothing was wrong prior, and there are much better alternatives.

Let's hear them.

{crickets}

Why the thundering silence? Because it is politically impossible to tell the truth: NOTHING can be done but make it worse.

All we are doing is prolonging and worsening a debt(not credit) crisis, by issuing more of what got us in trouble.

Bankers like debt(as long as it can be paid.)

This is a Tragedy of the Financial Commons.

Anonymous said...

BREAKING NEWS: Existing-home sales rise 5.1 percent in February

{woo-hoo} Now get out there and buy some stocks, folks.

Anonymous said...

could cost 1 Trillion?
1 Trillion will just get it started. Citi likely has 1 Trillion it would like to unload.

Anonymous said...

The true value of the toxic crap would only be determined if it was only private investment money used to purchase the crap.

This plan will fail too. Or they will change it in the coming weeks.

December 2008

casey said...

Why don't they just send every american 10,000 dollars and call it good.Why do the banks get all the help when families are hurting.

Anonymous said...

Ooooobaaaamy!

Gimme Cheese.

Mammoth said...

Speaking of paying the doctor – and any other medical bills – why bother?

If you don’t pay that chunk of the doctor bill which your insurance won’t cover, what are they going to do?
- Send you to debtor’s prison?
- Reposess your kidney?

O.k., they may ding your credit, but SO WHAT? If you are here reading this blog then you probably aren’t the type of person who lives on credit.

Since it seems half of America was able to live high on the hog, buy overpriced luxury homes, and then stiff the bank (and now you – the taxpayer) by not paying, why should you feel obligated to pay your medical bills these days?

Is this part of ‘Moral Hazard?’

-Mammoth

Anonymous said...

Home Values will not begin to climb. Back to the bubble age.

Anonymous said...

Pre-Season Special!

It's cherry-pickin' time in Bankerville Estates!

Heavily-laden 'branches' of low hanging federally subsidized fruit!

BYOB: Bring your own baskets!

Anonymous said...

Yesterday I described what was coming or in other words how the crooks plan to finish the massive theft of the American people by the global elites/banksters. Use your money to buy all the paper or title to EVERYTHING for 5 cents on the doller. Again using your fucking money.

Some prick had to make some comment about spell checker shit rather than adrress any substance. How you feeeling now prick. No way for you to get your snout into this is there. Nooooo you you just write the check, the real smart guys get the cash. Hey maybe you can buy your way into a vulture fund for lets say 5 million. Noooottttttt. Your spell checker will not save you from whats coming. Great part, they print the money to hand these guys to buy the paper which in turn destroys real money held by the little people or slaves.

Ohhhhh yaaaaaaa baby we all big time investers with spell checkers.

PS Most people here are very sharp with differing views. The spell checker people are just flat out dumb pricks.

Mark in San Diego said...

As one who actually remembers Resolution Trust (to clean up the S&L mess), I also knew we would get to this - even Bill Gross (Pimco) is onboard - result - Recession is now at the beginning of the end - the light at the end of the tunnel. . .was out at the shopping centers yesterday - "recession cancelled by popular demand" People actually had bags in hand, not just window shopping.

Of course San Diego's economy is propped up by the military and defense contractors, so maybe it is different here.

Anonymous said...

"Wind Farmer said...
I prefer (vs PIC):
FUCU
Federal Universal Colossal Underwriting"

Poetry. Plain and Simple

DIE U PIGS

Anonymous said...

This program is based on giving non recourse loans to those that put up 5 % of the price that they are willing to pay.

So if Citi decides to buy a bunch of mortgage backed crap from JPM for 500 billion, Citi puts up 25 bil to hand to JPM, gets 475 bil from the American citizen to hand to JPM, and JPM hands over crap that may be worth 1 bil, maybe less;

In turn JPM buys a bunch of mortgage backed crap from Citi for 500 billion, puts up 25 bil to hand to Citi, gets 475 bil from the American citizen to hand to Citi, and Citi hands over crap that may be worth 1 bil, maybe less.

Then both Citi and JPM walk away from the loans, letting the government keep the crap MBS stuff worth 2 billion as collateral, each keeping the 450 billion in loan money that was paid to them for their crap, and since the loans are non recourse, the govt is stuck with just the crap and each company has made 500 billion minus the 25 billion they had to put up themselves for a total of 475 billion profit each, courtesy of the American citizen, who is left holding the bags of crap.

This isn't about cleaning up after the pigmen. It is about the pigmen getting even richer at the expense of everyone else.

Guberville Smack said...

Awesome!
Man that was one horrible recession.
I suffered tremendously, can't wait to get more credit again.
Dow up to 7600 on the great news!

Anonymous said...

So far the Powers have wasted trillions protecting the investment class ,the very crooks that created and profited off the ill-gotten gains of the big Ponzi -scheme Casino bets .What a waste and these people don't even go to jail or they aren't sued for bad faith in business .Credit agencies and Politicians that were paid off to endorse mis-priced risk will also get off the hook .

And oh how wonderful that the taxpayers get the bill and the crooks in large part still have their millions and billions .

They should of corrected the corruption and cleaned house ,allowed businesses to fail before any bailouts . That way a careful analysis of what funds were needed to unwind the corruption was needed .

Just scream "fire" in a movie house ,give Paulson a Blank Check with immunity and maybe the American public will forget where the money went ,or worse ,the public will never find out where the money went . THe public gets side-tracked with bonuses and how unjust they are and they don't delve into the total lack of Justice with the 165 billion dollar AIG bail-out to Paulsons friends . The AIG bail-out was also a insurance policy that Paulson would never get sued for his "acts" as a CEO with Goldman's.

Oh did I post like crazy when the money looting was about to begin and guys like Crammer and Paulson
started screaming "Fire ". And just think how close Congress/Senate came to not passing that crooked Bill ,but the
lobbyist came out in droves to insure it's passage in spite of the public calls and complaints to their Politicians .

We have been taken over as a people and we are not represented by our Politicians . Taxation without Representation .

Remember when the British use to tax the people in America and it brought about the revolt and Declaration of Independance .

Strange how the very issue that started this great Country is the very issue that threatens to bring it down and destroy it . We knew the British were our enslavers when this Nation was young ,but now our own Government is our enslavers and looters and they will pick and choose who gets the money ,after they are bought out .

You would think that the three chamber check and balance system ,including the Judicial system ,with all the check and balances would prevent some of this looting .

The Judicial system isn't brought into the mix because when you bail-out crooks ,they never have to answer to Justice . When you change the laws after the fact ,the Judicial system doesn't
get to weigh in on the Constitutional violations to the taxpayers .

WHo is going to test what Powers that the Feds and guys like Paulson took ,under the guise of bought off Politicians approval of their acts of looting the public coffers ,which is borrowed money or printed money .

The system that had turned corrupt should of been busted ,dismantled ,and than restitution should of occurred according to Justice , The check and balance system of our government ,which is the Judicial system is almost absent in this
mess and that is why we are sunk . We are allowing the thieves to avoid that check and balance system that was created for the very reason to prevent this sort of takeover.

The miltary could take over the government also under the justification of 'Emergency ",and it could be a nutcake General that does it . Ever seen the Move '7 Days in May ? Just replace a Military Takeover with Hank Paulson , the Feds , the bought off Politicians ,and the New World order begins .

The very people that sold out the Country have seized the Country and we people don't even realize it ,they think they are our Saviors .

Once the check and balance system no longer operates ,as in Obstruction of Justice ,and a takeover takes place ,as we are witinessing ,it's all over ,its all over .

What would of been Justice . First the gamblers should of failed no doubt ,and the crooks should of failed no doubt .To bad if the investment class lost their money ,the loss would of been spread out no doubt . This way all loss is strattled on innocent parties and we die as America . We die because America was built on the system and the concepts of the Constitution and the 3 chamber check and balance system . This government system that has served us so well for years has now been taken over by a Coo . It wasn't a Military Coo ,which is usually the case ,but it was a Wall Street ,BIg Business Coo ,with the complication of faulty Globalism
making it a World WIde Coo against America .

Get real everyone ,changing Contracts after the fact and picking and choosing who gets money without any Constitutional protections is a take-over of the system .

What emergency would even qualify for a 'Emergency Takeover" of the
system and a avoidance of the Judicial Systems check and
balance ? Maybe a attack on our shores would qualify for emergency measures .

Investos loosing money does not necessary qualify for avoiding law and order and Justice and the check and balance system that was
inherent in our system of Government and was needed to protect the application of the Constitution .

If you think the COnstitution doesn't mean anything any more ,than you have no idea of why
America was sucessful to begin with .

Anonymous said...

This looks like the $1 triilion dollar a month administration.

And annual budget deficits for as far as the eyes can see over the horizon.

Looks to me like Geithner has been taking advice from Dick Cheney that deficits don't matter.

DOPES said...

DOPES! THE MARKET IS GOING RIGHT BACK TO WHERE IT WAS BEFORE!

danm said...

All these things happend under Castro. what Castro failed to mention was the Doctor had nothing
-----------
Well many doctors deserve as much as the nurse... it's not as if they stayed away from the credit bubble... all the surgery done on credit.

All of America has been living above its means, not just the bankers.

debt man walking said...

Where were the federal government and its watchdog agencies? A new report issued by the Consumer Education Foundation titled, “Sold Out – How Wall Street and Washington Betrayed America”, bluntly and with documentation, asserts that over the past 30 years, the financial interests spent more than $5 billion on influence peddling, $1.7 billion on political contributions and $3.4 billion on lobbying.


http://tinyurl.com/csckge

Mitesh Damania said...

Mark in San Diego, how much did you get your condo for in downtown SD? Get in touch with me as I am hunting for investment propert in socal.

Anonymous said...

"...Citi and JPM walk away from the loans, letting the government keep the crap ..."

Anonymous said...

Public Investment Corp participant's motto:

Heads, I win. Tails, taxpayers lose.

patrat said...

Let me see if I have this right. Taxpayers will give bankers and rich people the money to buy up worthless assets for pennies on the dollar. During this process, the worthless assets will be repriced so that they can be sold for a profit to special mutual funds that the taxpayer will be encouraged to buy in his 401K. If anything goes wrong before that, the taxpayer will cover it. Is that right?

JAWS said...

Strikes me that Obama is nothing more than a helecopter man and we already have one of those. He's throwing money around and around, as though he knows how to play with the big guys. It's clear to me that he's been outwitted.

Are there any private investors left that are willing to partner with the government....to purchase anything??

Private investors with money are partnering with other private investors with money NOW, as Obama speaks - and buying blocks of loans and properties at 20-cents on the dollar, then repackaging and reselling for 30-cents on the dollar, and so on, over and over. The very same formula they did with the CDO's.

They are making huge deposits into banks then twisting the arms of the bank's management to hand over their inventory. It's Musical Chairs and somebody's going to be caught holding the bag when the music stops. Probably the government - what a joke.

Private investors, as usual, are car lengths ahead of the government. There is an absolutey mamouth amount of money out there playing musical chairs with loans and properties.

At this point, what else is there to do except pity Obama, BBQ some steaks, open a great bottle of wine, and get ready for Medium.

Anonymous said...

Yay! I'm up another 5% on my stocks today!

Yet another transfer of wealth. Line up the sheep for another slaughter.

Glad I bought right through the bottom. Dollar-cost averaging works. Even after all this calamity, with reinvested dividends I'm break even today.

Ron Paul is right! said...

We continue to get fucked in the ass. I am disgusted, but not shocked. Although I had hoped that we would get a little courtesy reach around or maybe some lube. Nope, we (taxpayers) are on the hook for 93% or whatever of the craptacular loans. Again, Obama is just a puppet, a frontman. He sold his sould just like Bush before him, same shit different day.

But what's really sick about this is, it's not going to fix the anything. It's just more taxpayer money going to the bankers.

Again, employers are not going to all of a sudden start hiring. And they certainly aren't going to increase wages. Banks aren't going to start throwing credit around either.

Nope, the 500k-600k lost jobs per month will continue. I might have been ok with getting raped if they at least did something constructive.

Anonymous said...

"Public Investment Corp"


Formerly marketed as: "The Privatization of Social Security".

They want it ALL...and they want it NOW!

Anonymous said...

"Obammmmy Gimme Cheese!!!"

The only people getting cheese from Obammmy are the big banks.