More Bank Failures Mean TARP Through 2010 [View article]
Geithner testified before the Congressional Oversight Panel last week and indicated that the US economy was strengthening. He told the COP that the government can start to unwind some of its emergency support measures. Here’s what he said, "it is clear that we have stepped back from the brink and that we are pointed in the right direction." "We are now in a position to evolve our strategy as we move from crisis response to recovery."
With the tsunami of bank failures, I predict that TARP is extended through 2010, and that the unwinding of Fannie and Freddie portfolios will not begin in 2010 as described by the Conservatorship guidelines.
While testifying, Geithner frustrated Elizabeth Warren, and any COP recommendation such as a second Stress Test will be ignored. What good is a Congressional Oversight Panel that gets no respect? ______________________...
The steps mentioned were very modest, inluding no longer guranteeing money market funds, allowing the FDIC to unwind its loan guarantee and Treasury taking back its "placeholder" request for $750 billion in additional bank-rescue funds.
With residential mortage foreclosures rising, pending mortgage resets across a variety of residential loan products about to kick-in, unemployment at stubborningly high levels and and the impending implosion in commercial real estate in its many forms, all banks are about to get slammed and the author could be correct that TARP will be around for along time if for no other reason to collect on the debt owed by AIG, Citi, BAC and the auto companies.
Revealing total insensitivity to the needs of small banks because they lack systemic relevance, Geithner has been something less than inclined to assist small banks that have approached Treasury hat in hand for financial assistance. Against the backdrop of global finance, there are not sustemically important but in terms of fueling past growth in employment they have been sytemically important.
Medium sized and small banks, who are most exposed to CRE direct loan holdings, are likely and projected to continue failing at an alarming rate; some expect an additional 1000 failures over the next two years. As lenders to small businesses the failure of one spells the failure of the other, as large banks have no interest in working with main street banks.
Treasury may decide to step in and help but it looks the FDIC will be left with the mopping up.
What's Killing the U.S. Dollar and Its Impact on Income Investors and Markets [View article]
For the very reasons described by the author, I think you can bank on higher interest rates. TBT, an ultra-inverse ETF based on the 20 YR Treasury, is up 30% from the early part of April.
More Bank Failures Mean TARP Through 2010 [View article]
Geithner testified before the Congressional Oversight Panel last week and indicated that the US economy was strengthening. He told the COP that the government can start to unwind some of its emergency support measures. Here’s what he said, "it is clear that we have stepped back from the brink and that we are pointed in the right direction." "We are now in a position to evolve our strategy as we move from crisis response to recovery."
With the tsunami of bank failures, I predict that TARP is extended through 2010, and that the unwinding of Fannie and Freddie portfolios will not begin in 2010 as described by the Conservatorship guidelines.
While testifying, Geithner frustrated Elizabeth Warren, and any COP recommendation such as a second Stress Test will be ignored. What good is a Congressional Oversight Panel that gets no respect?
______________________...
The steps mentioned were very modest, inluding no longer guranteeing money market funds, allowing the FDIC to unwind its loan guarantee and Treasury taking back its "placeholder" request for $750 billion in additional bank-rescue funds.
With residential mortage foreclosures rising, pending mortgage resets across a variety of residential loan products about to kick-in, unemployment at stubborningly high levels and and the impending implosion in commercial real estate in its many forms, all banks are about to get slammed and the author could be correct that TARP will be around for along time if for no other reason to collect on the debt owed by AIG, Citi, BAC and the auto companies.
Revealing total insensitivity to the needs of small banks because they lack systemic relevance, Geithner has been something less than inclined to assist small banks that have approached Treasury hat in hand for financial assistance. Against the backdrop of global finance, there are not sustemically important but in terms of fueling past growth in employment they have been sytemically important.
Medium sized and small banks, who are most exposed to CRE direct loan holdings, are likely and projected to continue failing at an alarming rate; some expect an additional 1000 failures over the next two years. As lenders to small businesses the failure of one spells the failure of the other, as large banks have no interest in working with main street banks.
Treasury may decide to step in and help but it looks the FDIC will be left with the mopping up.
What's Killing the U.S. Dollar and Its Impact on Income Investors and Markets [View article]