The Treasury's plan would require all private investment funds — including hedge funds, private equity and venture capital — that manage assets above a threshold that has yet to be defined to register with the Securities and Exchange Commission. These funds would have to disclose their trading positions, on a confidential basis, for regulators to assess whether the size of those risks pose a threat to the country's financial stability.
Banking analysts hailed this as a necessary step to protect financial markets.
"Some of these entities wield enormous power, enough to shake big institutions like Citi, and we should at least know what they are doing, just like the regulated segments of the industry," says Richard Bove, financial analyst at Rochdale Securities.
God forbid we should consider striking at the root of the problem - bad mortgages.
If we had laid out the funds to refinance/cramdown the "toxic" assets at their base - adjustable rate mortgages, interest only mortgages, cramdown of mortgage balances for properties underwater - then maybe the banks take a hit of 10 cents on the dollar for the cramdowned mortgages and they have to scale back or eliminate their bonuses, but the system is stable.
Nope, we can't do that. Let's devise a bailout plan that is complicated and non-sensical as the derivative swaps that anchor the crisis. That's the ticket.
When is Obama going to take a real chance and really commit to change as in proposing single payer healthcare, or proposing criminal prosecution of the torturers, or really jamming a financial recovery based on the health and welfare of the non-banker class?
That's the change I am ready for. Now that would be audacious.
Posted by mike at March 29, 2009 11:08 AMI've made the suggestion before. Instead of all this complicated bs that only helps the few. How about the Fed paying for everybody's mortgages or rents for a year or two, three? Place a limit of $1500.00 a month on this payout. This would make everybody's mortgage current. Allow values to level off and banks or lending institutions would only have commercial properties to worry about. The people would get to spend their monthly payments into the economy. Sell their houses off if they're unable to afford it, or get their life in order to continue on with their responsibilities.
Everybody's boat rises, all are helped equally and the world will benefit from this. America and Americans will lead the way thru this moreas.
Posted by peter at March 29, 2009 08:51 PMYes, Peter, but that would mean that money goes to your average shmuck, and those in power take care of their own. Here is another idea from a reader at urbansurvival.com.
"Dear Mr. President,
Patriotic retirement:
There's about 40 million people over 50 in the work force; I suggest you pay them $1 million apiece severance with three stipulations:
1) They retire from their jobs. Forty million job openings - Unemployment fixed.
2) They buy NEW American cars. Forty million cars ordered - Auto Industry fixed.
3) They either buy a house or pay off their mortgage - Housing Crisis fixed.
All National financial problems fixed!!!"