tag:blogger.com,1999:blog-1227919517269937208.post4923621997954841549..comments2023-09-17T08:37:58.006-06:00Comments on The Good News Economist: How Toxic Assets Turn To GoldEldon Masthttp://www.blogger.com/profile/15444008509086050220noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-1227919517269937208.post-21486039298078000862009-03-26T13:45:00.000-06:002009-03-26T13:45:00.000-06:00@iron308,Care to elaborate on why a plan to stabil...@iron308,<BR/><BR/>Care to elaborate on why a plan to stabilize the big banks will not help those of us saps who have been prudent and responsible? And why appreciating assets are not so great for the rest of us?<BR/><BR/>Thanks,<BR/>GNEAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-64394048860104130722009-03-26T06:07:00.000-06:002009-03-26T06:07:00.000-06:00It's great for Mike, great for the banks, great fo...It's great for Mike, great for the banks, great for the foolish.....not so great for the rest of us saps who have been prudent, responsible, paid our bills and saved for a rainy day.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-75602564532329534532009-03-24T13:17:00.000-06:002009-03-24T13:17:00.000-06:00GNE:We're in Atlanta. I'm also aware of big proje...GNE:<BR/><BR/>We're in Atlanta. I'm also aware of big projects shutting down in Las Vegas and Chicago<BR/>where investors are taking the position that they would rather not get deeper in the venture given the uncertainties of the market for tenants. Let's hope values start climbing in the Fall and these projects get a second chance!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-80060140261737709702009-03-24T12:32:00.000-06:002009-03-24T12:32:00.000-06:00Anonymous,What region are you in? Some regions ar...Anonymous,<BR/><BR/>What region are you in? Some regions are now skyrocketing with respect to commercial construction... for instance Birmingham AL reported last friday that contracts are now up almost 90%<BR/><BR/>http://www.bizjournals.com/birmingham/stories/2009/03/16/daily35.html<BR/><BR/>Contraction has indeed happened since the big chill last October, but contraction is now slowing significantly.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-11578031874946096332009-03-24T11:38:00.000-06:002009-03-24T11:38:00.000-06:00Unfortunately, we're seeing banks (small, medium a...Unfortunately, we're seeing banks (small, medium and large) shut down construction projects every day. With property values going down, banks don't see how they can justify putting more money in the projects with little expectation of getting paid back. I hope the Treasury plan will encourage new investors to jump in and get the projects rolling again.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-52445043541622187262009-03-23T19:39:00.000-06:002009-03-23T19:39:00.000-06:00Anonymous,Only the large comm construction project...Anonymous,<BR/><BR/>Only the large comm construction project have been shelved. Most of the larger ones need to be financed by one of the top 19 banks. <BR/><BR/>Smaller comm construction funding is still flowing nicely -- in fact at record levels...<BR/><BR/>It would be my wager that if a construction co really does want to move forward that conditions will be favorable for that sometime before fall.<BR/><BR/>GNEAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-48183978465271517482009-03-23T15:57:00.000-06:002009-03-23T15:57:00.000-06:00GNE:Do you think this plan will get the banks to s...GNE:<BR/><BR/>Do you think this plan will get the banks to start up commercial construction projects that have been shelved or where funding has been halted during construction or will it really depend on whether consumer demand picks up substantially to revitalize these projects?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-85144113422153360422009-03-23T15:38:00.000-06:002009-03-23T15:38:00.000-06:00Fabio,I love auctions... I am not sure that they w...Fabio,<BR/><BR/>I love auctions... I am not sure that they would create the market movement that is being sought. The goal is to get the assets off the books and provide renewed liquidity in the top 19 banks.<BR/><BR/>I doubt the Dutch auction would accomplish this.<BR/><BR/>I also doubt that the taxpayers will be robbed. Banks stand to lose the most. And the taxpayer also stands to make the most with more skin in the game.<BR/><BR/>GNEAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1227919517269937208.post-38790604342001690212009-03-23T15:20:00.000-06:002009-03-23T15:20:00.000-06:00With just $6 in at risk money from private sector ...With just $6 in at risk money from private sector and $78 dollars in equity and government guaranteed loans in the example of an asset purchase the Treasury gave to illustrate how the plan might work. I ask why bother with the private sector. The taxpayers of the US will be robbed by this plan. No wonder Wall Street hedge funds love this plan it continues the legalized robbery of the American people they get huge profits by just risking a small loss. The government should just bid max 40 cents on the dollar for the assets take it or leave it in a series of Dutch auction each with a fixed total dollar amount to spend. Like the way the Fed raises funds for the U.S. Government using a Dutch auction.Fabio Gostosaohttps://www.blogger.com/profile/05016757744828406218noreply@blogger.com