So how is the USGOV Bailout Coming?
GOOD: The FDIC is insuring all non-interest bearing deposits.
GOOD: The USGOV has not bought an MBS or other derived complex securities…
BAD: Nobody is talking about changing bank deposit capital requirements to allow banks to loan more (which could be done right away without taxpayer money).
BAD: USGOV is not using impartial Bank Examiners to determine proper capitalization levels (from the Soros plan)
GOOD: USGOV is increasing the capitalization Banks some $250billion…
BAD: … 1/2 to 9 large banks (whch 9 and why those 9) and 1/2 small banks
SO-SO: Instead of using secured loans (my prefered plan) or secured loans plus warrants,they are using Preferred Shares.
UGLY: The prefered shares are below market rates (meaning taxpayers are coming in after stock holders to some extent). The lender-of-last resort should have a higher dividend rate.
GOOD: NY Times thought: “Banks that are loudly demanding that mark-to-market rules be suspended should receive special attention, for the same reason that the police are suspicious of people who hurriedly hide something as a cop approaches. Banks that want government cash should have to prove they are providing accurate market values of the assets they own.”
WTF UGLY: The confusion coming from USGOV and pundits is creating much uncertainty and causing the problem to spread. Uncertainty worsens panics by delaying investors. This has happened before. Banks will also be slow to act.