Geithner Plan 2.5

More exotic ways that a bank could buy transfer exposure to the taxpayer.

Category:

Education

Tags:

• geithner
• tim
• TARP
• bailout

[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.

[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.

[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?

[4everFitnessBlog]

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

[stepchangeable]

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

[sysopkc]

yep I gathered the same thing

[RyanMinaker]

good for my CITI shares! lol

[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?

[epicswell]

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