*one can only imagine what is going on here. Has PIMCO finally come to their senses? The problem I have seen is that banks are not likely to adjust prices to reflect actual value because they would lose money, BIG. And PIMCO must know, although I am suspect, after all they bought a TON of subprime in October 2008 thinking we had hit a bottom, that this PPIP is a losing proposition even with government backing. But I am willing to give them a second chance and believe that they are doing the right thing here. Treasury has said if the program is not successful enough then Treasury will pick up the slack. Geithner will be fired if this fails. Bet on it.
U.S. Treasury Opens Distressed-Debt Program Without Pimco
By Sree Vidya Bhaktavatsalam
July 9 (Bloomberg) -- The U.S. plan to help buy as much as $40 billion in assets from banks got started almost four months after it was proposed and without Pacific Investment Management Co., the world’s biggest bond manager and an early supporter.
The Treasury Department picked nine money managers yesterday for the Public-Private Investment Program, or PPIP, including BlackRock Inc. and Invesco Ltd. Pimco, which in March announced plans to apply, said it withdrew its application in June because of “uncertainties” about the initiative’s design.
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