Overview of 2009 U.S. bank rescue plan (Bank Bailout)

February 10, 2009 by · Leave a Comment
Filed under: Economic News 

First off, the market is tanking pretty bad.  Not a vote of confidence at any stretch.  At the time of this writing the market is down 4.6%, ouch.  Basically the plan is used to buy toxic assets and use money to help private investors purchase these assets.  

Outside of the mortgage-backed securities, I am not sure what investors are going to buy?  I don’t think I would purchase debt insurance contracts (CDS) in this market, who would want that risk when so many other indicators are pointing towards a global depression.   Plus I still stand by my prediction that the white elephant in the room is the fact that many of these banks are carrying insurance contracts on their balance-sheet (somewhere) that have already gone bust so they are not a real asset, but a liability.  Here is the full overview:

2009 Bank Bailout Overview:

Read more