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Tuesday, February 10, 2009

Timmy Has A Plan...

Timbo "TurboTax" Geithner has a plan... that is "comprehensive" and stuff.

Like I said, Buy the Rumor, Sell the News.

Geithner Says Bank-Rescue Plans May Reach $2 Trillion (Update2): "Treasury Secretary Timothy Geithner pledged government financing for as much as $2 trillion of efforts to spur new lending and address banks’ toxic assets, seeking to end the credit crunch hobbling the economy.
"Instead of catalyzing recovery, the financial system is working against recovery," Geithner said in unveiling the Obama administration’s financial-bailout overhaul in Washington today. "At the same time, the recession is putting greater pressure on banks. This is a dangerous dynamic, and we need to arrest it."

Stocks slumped, led by financial shares, as investors expressed concern about a lack of specifics on plans for addressing the distressed assets choking banks’ balance sheets. Geithner warned today that it will "take time" for the administration’s strategy to bear fruit.

The main components of the Treasury’s package today are a joint public- and private-sector fund to buy as much as $1 trillion of illiquid assets and a $1 trillion program to supply new credit to consumers and businesses. The administration also will inject additional taxpayer funds into banks, imposing tighter restrictions that will include limits on dividend payments, acquisitions and executive pay.

"I want to be candid: this strategy will cost money, involve risk, and take time," Geithner said today."

1 comments:

Charts and Coffee said...

New post regarding double top on SPY, market expansion and buying financials - http://chartsandcoffee.blogspot.com/2009/02/double-top-vix-long-financials-silver.html