Hedge funds investments in the PPIP will be levered, but the equity downside is still 100%. Apparently, though, that’s not enough for Rep. Kenny Marchant, who believes the private side doesn’t “have enough skin in the game.” He wants them taking this shit seriously, and in order to get them to do so, we’ve got to up the stakes. So, suggestions? Off the top of our heads we’re thinking 300% downside for the hedge funds that get involved. You know, a real Dantesque financial plan. We also like the idea of them getting burned but like, REALLY burned, as in third degree burned, via dipping managers in a life-sized deep fryer, with gigantic tongs.
Geithner in the House (Financial Services Committee): What Are We Going To Do To Them, Harry?
By Bess LevinComments (21)
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tax the losses at 90% as well.
non recourse funding = no skin in game
Some form of indentured servitude for the HF’s offspring, even unto the seventh generation.
@2 – Only if 100% leverage
Wow. Good to see Sloth from the Goonies working again. Got elected to represent Ohio’s 15th district, apparently.
timmay– 2 sides of the argument: that it’s too generous to the investor or it’s too generous to the bank, both can’t be true.
ah? hello?!?!? it is and that’s the problem, because there’s a 3rd component there he neglects to mention– too loss-making for the taxpayer!
HEY YOU GUYS!!!
Does a day go by when Obama is not holding a press conference?
@ 8 – no
Do you like the switch to Plasma? I’m assuming Prompter is not happy about being squeezed out
Do you think Michelle is jealous of Prompter?
Damn AIG for paying 100 cents on the dollar, damn AIG for paying 5 cents on the dollar.
I’m surprised the plasma fits in with the ‘green’ stimulus.
Home Alone FTW!
I love that this adminstration is going full court press on liquidity being the problem.
They all got the talking points 10 days ago. Since then, all we here is everything will be great if consumers can get loans again. Toxic assets aren’t toxic if we pay 95-100 cents on the buck for them.
Wow the coming implsion is going to make last fall look like a “small dislocation”.
Ride the wave to DJ 10,000 and then back to 4000 (maybe 3000).
@8– no, it’s part of the communist manifesto. see #6
10 Conditions For Transition To Communism
1- Abolition of property in land and application of all rents of land to public purposes.
2- A heavy progressive or graduated income tax.
3- Abolition of all right of inheritance.
4- Confiscation of the property of all emigrants and rebels.
5- Centralisation of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.
6- Centralisation of the means of communication and transport in the hands of the State.
7- Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
8- Equal liability of all to labour. Establishment of industrial armies, especially for agriculture.
9- Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country, by a more equal distribution of the population over the country.
10- Free education for all children in public schools. Abolition of children’s factory labour in its present form. Combination of education with industrial production.
Er, aren’t first degree burns the really bad ones? Jus sayin.
@15 no. Anything else?
@15 – er… Nope 3rd’s the worst. Thanks for playing.
@5- “just sayin” that your an idiot.
* First-degree burns are usually limited to redness (erythema), a white plaque and minor pain at the site of injury. These burns involve only the epidermis. Sunburns can be included as first degree burns.
Second degree burn caused by contact with glue at 145 Degrees C.
* Second-degree burns manifest as erythema with superficial blistering of the skin, and can involve more or less pain depending on the level of nerve involvement. Second-degree burns involve the superficial (papillary) dermis and may also involve the deep (reticular) dermis layer.
Major second degree burn caused by contact with boiling water.
* Third-degree burns occur when the epidermis is lost with damage to the subcutaneous tissue. Burn victims will exhibit charring and extreme damage of the epidermis, and sometimes hard eschar will be present. Third-degree burns result in scarring and victims will also exhibit the loss of hair shafts and keratin. These burns may require grafting.
@18 I hate to do it but if you are going to call someone an idiot please use you’re or you are.
Love that former roofers (no joke, check his website) are responsible for fiscal policy in this country. I will sleep much better now.
I wonder if the forehead slapper has just thrown in the towel, I mean, demand for his services is just too much for any one person, so it’d be understandable.