Geithner Plan 2.5

[4everFitnessBlog]

Sal, you had me for all of the banking and Paulson bailout videos but you successfully lost me on this one!!

[busrider85]

If this is true, then aren't u arguing for one to back up and fill up his truck with bank stocks. I can't wait to watch the next 3 videos. This Geitner plan has comedy, tragedy, pathos, bathos etc. Why go to a movie?

[RyanMinaker]

good for my CITI shares! lol

[josww2]

Khan,

Even if the banks aren't doing as your video shows, the bondholders of these banks have the same incentive to buy these assets using PPIF - if the banks go under, they'll get wiped out. So we're bailing out the banks AND the bondholders.

[khanacademy]

You're correct. I go over that in the Geithner 7 video.

[sysopkc]

yep I gathered the same thing

[glassvision]

Geithner plan=cook the books by a crook.

[collegeboy477]

if we have more people unemployed every week, and more loans being created, arnt we going to have the same effects again that we are having now?

[stepchangeable]

thats why they thinks it going to be the worst depression ever...

[epicswell]

Youtube I know its april fools but upside down is not funny when im trying to learn something for an exam!

[TheDeathofGrace]

humans...

[davidmesaaz]

I also like Hernando Desotos explanation in the WSJ for the market collapse is that the toxic assets are not owned by anyone.

[davidmesaaz]

Alan Melzer had a great idea of the banking Require the banks to raise half the funds on the open market. So if a bank wanted 20 billion he would have to raise 10 billion from others. Banks that couldn't meet this requirement would be forced to close...

[schmokay]

An affiliate is a company that exists primarily because of another company. So an auto parts manufacturer that only has on client, Ford is an affiliate even if it is not a subsidiary.

Also, I can see where your CDS example would be an incentive to buy the toxic assets but I dont think it is an incentive to over pay for them. It could be an incentive to overpay if there was some backroom dealing going on. The government has to make it clear its a federal offense and will be prosecuted fully.

[bossman068410]

"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild

[daejinko100]

Would you describe this as cash for thrash?

[jdayne]

Back to your point of why would anyone purchase these toxic assets. These assets, are toxic under the current market condition, but this does not mean that they will remain toxic in the future. People will continue to buy houses, we have already seen signs of this; the recent figure shows that the purchase of houses is beginning to increase. Thus there are long-term values for holding these assets, and investors will purchase these assets.

[khanacademy]

If that is the case, then the program in the Geithner 5 video would work much better without these Government subsidies and incentives to game the program.

[Y3rMawm]

Bull trap in housing market. Housing prices will either fall further, or wages NEED to rise to meet traditional house/income levels of 2.5X to 3.0X

Like all other systems, this too will be gamed by Timmy's GS buddies.

If you want to re-cap these stupid banks, turn American consumers into savers by eliminating cap gains, including interest from savings accounts. Simple.