Tweet Much Ado About Toxic Assets
All through this banking crisis, the key for most experts is the fact that the flow of money has basically stopped to those that need it most for the economy to stabilize and have the potential to move back in a positive direction. The very source of funding for the businesses that are the core of jobs, the loans that fund college educations and the purchase of cars and homes and the consumer confidence that gives people the feeling that it is okay to spend money.
In yet another governmental acronym, PPIF (Public Private Investment Funds) will be established for the purpose of bidding on the assets that are on the books of the nation banks, and develop a true a market price through the competitive bidding. This will hypothetically move assets off of the books of banks and allow them to get back into the business that they were created to be in. Borrowing money at low rates through savings accounts and earning the spread on the loans that they make to consumers for homes, cars and students. As we speak the only borrowers with any potential to borrow are those at the very top of the safety scale. These are not necessarily the ones that need the cash flow the most. All of this this comes amid debate on the mark to market rules and the time it is taking to implement TALF (Term Asset Securities Loan Facility).
An announcement on the details could come this week, but as we have come to expect from this administration it might be the week after. When it is finally released, the details will hopefully be clearly presented, well thought out and have the potential to work.
G-20 Meets In The U.K
The G-20 met this weekend with promises to do whatever it takes to keep the economy of the world working. Rhetoric or reality? Stay tuned.
Protests In Pakistan Coming To A Head
As discussed last week, protests and demonstrations continued over the weekend, with the opposition leader Sharif ignoring the house arrest that was imposed and continued to lead his followers towards Islamabad and a rally in front of the Parliment. The police in Lahore allowed his prosession to go. All of this is extremely disquieting in this country with nuclear weapons, and at least for me, not one in which we are not totally certain as to who is in charge.
For the next few weeks the NCAA Tournament will help the masses become just a little distracted with what is going on in the economy, Washington and the world. Not forget, but maybe have it off the mind for a few hours a day. In this age of fat cat professional athletes who whine and cry about the state of their lives, wallets and team situations, is there anything more refreshing and exiting than watching the passion, pride and effort that goes on in college sports? Student athletes from schools as diverse as Binghamton and Cornell get to live the dream. As they say thousands of college athletes are going pro in something other than sports. This tournament is truly the opportunity for a once in a lifetime experience!