Analysis: The Soros Bail Out Plan
Related
Soros Fund Loss On Lehman May Be $120M
One analysis:
The Soros Plan
2008-10-01 - ft.com
You knew it was coming. We concede, definitely better than the modified Paulson plan that got defeated:
Instead of just purchasing troubled assets the bulk of the funds ought to be used to recapitalise the banking system. Funds injected at the equity level are more high-powered than funds used at the balance sheet level by a minimal factor of twelve - effectively giving the government $8,400bn to re-ignite the flow of credit. In practice, the effect would be even greater because the injection of government funds would also attract private capital. The result would be more economic recovery and the chance for taxpayers to profit from the recovery.
This is how it would work. The Treasury secretary would rely on bank examiners rather than delegate implementation of Tarp to Wall Street firms. The bank examiners would establish how much additional equity capital each bank needs in order to be properly capitalised according to existing capital requirements. If managements could not raise equity from the private sector they could turn to Tarp.
--MORE--
Changes to law and enforcement regarding markets are necessary in order to keep the basteds from cheating us too much. The basteds want time bought via bailout, so they can get out and leave someone else such as yourselves holding the bag(full of holes). No bailout is the way to go. Indeed it should not even be the point. The inside crowd ripping us off needs a taste of clear, ongoing justice folks, merciful(as in not hanging the basteds from the nearest lampost)but merciful justice, honest and fair, as they well deserve.
Soros Fund Loss On Lehman May Be $120M
One analysis:
The Soros Plan
2008-10-01 - ft.com
You knew it was coming. We concede, definitely better than the modified Paulson plan that got defeated:
Instead of just purchasing troubled assets the bulk of the funds ought to be used to recapitalise the banking system. Funds injected at the equity level are more high-powered than funds used at the balance sheet level by a minimal factor of twelve - effectively giving the government $8,400bn to re-ignite the flow of credit. In practice, the effect would be even greater because the injection of government funds would also attract private capital. The result would be more economic recovery and the chance for taxpayers to profit from the recovery.
This is how it would work. The Treasury secretary would rely on bank examiners rather than delegate implementation of Tarp to Wall Street firms. The bank examiners would establish how much additional equity capital each bank needs in order to be properly capitalised according to existing capital requirements. If managements could not raise equity from the private sector they could turn to Tarp.
--MORE--
Changes to law and enforcement regarding markets are necessary in order to keep the basteds from cheating us too much. The basteds want time bought via bailout, so they can get out and leave someone else such as yourselves holding the bag(full of holes). No bailout is the way to go. Indeed it should not even be the point. The inside crowd ripping us off needs a taste of clear, ongoing justice folks, merciful(as in not hanging the basteds from the nearest lampost)but merciful justice, honest and fair, as they well deserve.