tag:blogger.com,1999:blog-354631151228677187.post6634587269880031040..comments2023-06-07T06:38:13.835-07:00Comments on Capital Vandalism: Treasury Toxic Asset Plancap vandalhttp://www.blogger.com/profile/17179669039246988631noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-354631151228677187.post-28340109620767091002009-03-25T23:33:00.000-07:002009-03-25T23:33:00.000-07:00It's too good an idea to just disappear because of...It's too good an idea to just disappear because of excesses and one catastrophic failure.<BR/><BR/>In the 19th century, bridges tended to collapse fairly frequently, but they kept at it until they more or less perfected it.<BR/><BR/>For mortgages, I think agencies will have the market to themselves for a long while. Other stuff -- credit cards, auto loans, etc. will come back more slowly. <BR/><BR/>The basic concepts of pooling and tranching are too valuable to just disappear. Right now, there might not be any market for the equity and mezz tranches, but at some point, it will be back.cap vandalhttps://www.blogger.com/profile/17179669039246988631noreply@blogger.comtag:blogger.com,1999:blog-354631151228677187.post-11799111400540334662009-03-25T19:32:00.000-07:002009-03-25T19:32:00.000-07:00curious, since you seem to maybe have an idea -- p...curious, since you seem to maybe have an idea -- post-recovery, what do you think the scale of securitization is going to be?babar ganeshhttps://www.blogger.com/profile/01898299856773302141noreply@blogger.comtag:blogger.com,1999:blog-354631151228677187.post-35948019493899943642009-03-25T16:10:00.000-07:002009-03-25T16:10:00.000-07:00Yea....Having the facility but no successful aucti...Yea....<BR/><BR/>Having the facility but no successful auctions would be an OK outcome. <BR/><BR/>My latest thinking is that the leverage and subsidized interest rates will allow a bid close to true fair value and allow the investors to make 20%, which they need for the risk. <BR/><BR/>At least this way, there would always be a bid out there at a plausible price for distressed assets.cap vandalhttps://www.blogger.com/profile/17179669039246988631noreply@blogger.comtag:blogger.com,1999:blog-354631151228677187.post-17863157365296528472009-03-25T07:59:00.000-07:002009-03-25T07:59:00.000-07:00i've been wondering about a lot of these points. ...i've been wondering about a lot of these points. <BR/><BR/>the public debate on this is obscured by the fact that the debaters never cite numbers. how big is the pool of 'toxic' assets and what are they? who holds them and what is the state of their balance sheets? what is the mark in the market and how are they marked on the book?<BR/><BR/>i have no idea how people can make their minds up before getting that information, but they certainly have.<BR/><BR/>in my opinion failure (ie a failed 'auction') is the best and most likely outcome but i could be wrong.babar ganeshhttps://www.blogger.com/profile/01898299856773302141noreply@blogger.com