Toxic assets: “I can see clearly now!” (Update)

Thanks to Analysis *Kevin Drawbaugh who, in my opinion, “did his English Teacher proud” with his expository writing of this article. After reading the article, I thought of Gov. Wallace and what he would have said: “Greed today, greed tomorrow and greed forever!”

If you look back only a few weeks ago and see how America allowed people to be brutally murdered on the Gaza strip, you will only get a tiny spectrum of the determination for power as demonstrated by some segments of our society. Fasten your seat belts! There’s more to come.

There was a reason no Republicans supported the Stimulus Bill and TARP #2 with no caps on the pay of CEO’s. There are fair amount of Democrats who are also willing to see our country turned over to the nefarious and greedy beast of the world. It is my understanding real estate is the bed-rock of many of America’s wealthiest people. The foundation of their wealth. Their “Holy Grail!” Their “Mojo!” That being the case, the word F…..ed comes to mind and I don’t know if the “Magic Negro” can help us much with this one. I do not know if he truly can come to our rescue on this one, so to speak and I remain optimistic. I wonder as I wander.
Fighting for the dignity of my Ancestors,
God bless Bill Gates, WPFW, C-Span and the spirits of the unborn for the help,
BB
*Vague U.S. toxic asset plan aggravates credit crunch
By Kevin Drawbaugh - Analysis
http://www.reuters.com/article/newsOne/idUSTRE51B27A20090212?pageNumber=2&virtualBrandChannel=0
Excerpt:
"People are afraid to buy and afraid to sell because they're afraid the government is going to sweeten the deal," he told Reuters in an interview. "The markets are just waiting to see when we're going to be done."
Uncertainty about the government's strategy for toxic assets props up their value above what private investors might pay for them and delays potential resolution of the problems they pose, said California Democratic Rep. Brad Sherman.
"As long as there's the prospect the federal government will overpay for the toxic assets ..(Author: Home foreclosures?) . these banks would be insane to sell" in the private market, Sherman told Reuters.

(Update)
Yet another well written article helping me to understand the “Toxic Assets” situation. Much appreciated.

“If they (Author: The banks?) had to sell these securities today, the losses would be far beyond their capital at this point,” he said. “But if the prices of these assets will recover over the next year or so, if they don’t have to sell at distress prices, the banks could have a new lease on life by giving them some time.”
That sort of breathing room is known as regulatory forbearance, essentially a bet by regulators that time will help heal banking troubles. It has worked before.

And
In the current crisis, experts warn, banks need to get rid of bad assets quickly. The Treasury’s public-private investment fund is an effort to do that.
Ailing Banks May Require More Aid to Keep Solvent
By STEVE LOHR Published: February 12, 2009
http://www.nytimes.com/2009/02/13/business/economy/13insolvent.html?pagewanted=2&_r=1&hp


Word of the day: insolvent
Definition
Unable to meet debt obligations. opposite of solvent.