Geithner 5: A better solution

A better way to solve the "liquidity" and "price discovery" problem.

Category:

Education

Tags:

• toxic
• asset
• price
• discovery
• geithner
• obama

[personkid20]

why not package them as etf's in terms of risk and levels of default risk actualities and float them on the exchange

[khanacademy]

that would be perfect. They would still need to give some transparency as to what is in the toxic securities.

[hipbas]

The sad truth is that the people involved within the Treasury Department concocting these fraudulent schemes(Geithner, Summers, Volcker etc) know exactly what their doing, these are not incompetent people.Their corporate past represents total conflict of interest with their current positions. They are loyalists to the financial oligarchs. Unfortunately they do not serve the interests of the people and will leave them on the hook for trillions of dollars and for generations to come.

[bjmorris64]

You could have saved a whole bunch of time and edited all of the videos down to the 20 seconds of the last one. BTW. I really enjoy your take on things. Even those I don't agree with because I think your main objective is an honest and open society. Thank you.

[paulceltics]

thanks

[sleepyhead7391]

"in the last couple of videos, i've been dumping on the geithner plan"

[littlebluemagic]

This sorts of begs the question, what if the transparency really shows that that the banks really should fail. Is there a way to minimize the impact of all these large banks going bankrupt at once?

[yaimavol]

Here's what is missing in your calculation: fractional reserve derivatives. In other words, they took a mortgage worth 300K and sliced it into derivatives worth $ 1 million. This is the next shoe to drop. Pension funds have demanded more information about the derivatives they are holding, and banks either can't or won't tell them. This is the biggest financial fraud in history, and it is moving into it's 2nd phase of destruction.

[asbytec]

I actually like the Lone Star deal for a couple of reasons. First, it removed a distressed asset from the balance sheet and parked it in an affiliate of Lone Star. Second, The distressed asset was replaced by a loan asset of higher value on the original bank's books. Lastly, it left the government out of the mess to facilitate such deals with interest rates. This is free market capitalism fixing itself.

[matt92649]

Would you please make a video explains the Paulson plan that bailed out AIG 100 cent for the dollar by taxpayers money including all the toxic assets they have. Thank you.

[upliftspirits]

Until the thieves go to prison for stealing from the baby boomers; nothing will ever change. Until Congress pass laws against stealing no banker ceo will ever go to prison.

[caffeinephreak]

The toxic asset website is a nice idea but big software projects are notoriously over-budget and fail to get completed.

[mallikai2009]

Sal,

You are over simplifying the process of adding transparency to these complex securities. Why would a bank open its books to the govt. and provide essential information to add more transparency? Secondly, who the govt. can employ to do the meticulous job of auditing the assets and verifying the facts? What is the incentive for the auditor or the bank to embark on this plan?

The insolvent banks should go bankrupt or nationalized.