*who have they been kidding right? Ijiots think those mortgage CDO's they sold for years will one day be worth their face value again. But say it isn't so Sam...OK, it isn't. Helicopter Ben should have taken over the banks when he had the chance. That's what I have been saying all along and by the time these moronic economists and bankers give in to it, we will all have suffered so much more needlessly because of their GREED, arrogance and stupidity.
Wary Banks Hobble Toxic-Asset Plan
By DAVID ENRICH, LIZ RAPPAPORT and JENNY STRASBURG
The government's plan to enable banks to dump troubled assets is facing troubles of its own.
Markets initially rallied when Treasury Secretary Timothy Geithner announced in March a two-pronged plan to offer favorable government financing to entice investors to buy bad loans and toxic securities from banks.
But that initiative -- called the Public-Private Investment Program, or PPIP -- has lost momentum. Big banks worried about having to sell at fire-sale prices while small banks feared they would be shut out. Potential buyers balked at the risk of doing business with the government, concerned that politicians might demonize them for making big profits.
The program's problems threaten to stymie efforts by struggling smaller banks, in particular, to clean up their balance sheets. That in turn could hinder efforts to revive the nation's economy.
A look at why the program has stumbled underscores how difficult it has been to solve one of the economy's biggest problems: Mountains of bad debt sitting on the books of the nation's banks. As those loans and securities lose value, they are saddling the banks with losses and constricting their ability to lend. more...
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