on display from our Treasury Secretary.
Jan. 16 (Bloomberg) -- The heads of the U.S. Treasury and Federal Deposit Insurance Corp. gave further momentum to the idea of a new government-backed bank to remove toxic assets from lenders’ balance sheets.
"A lot of work has been done on an aggregator bank" and other ways of using the $700 billion financial-rescue fund "to let it go further when it comes to dealing with illiquid assets," Treasury Secretary Henry Paulson told reporters today in Washington. FDIC Chairman Sheila Bair praised the idea in an interview on CNBC, saying it might have "some merit."
http://www.bloomberg.com/...
The answer is so profoundly already out there. We've already given 350 billion dollars a figure apparently no one can comprehend well enough to get angry enough, and now the best Paulson, the treasury secretary can do to ease up credit and lendability for banks, is a bank, 'the Aggregator bank'. A bank where toxic debt.... toxic, is poison right, this same poison that is ruining the banks in swift moving virus like fashion, he wants the US to use billions more to buy up this poison. And where should it be stored? In an aggregator bank because, the world needs more poison all stored up in an aggreator bank, to use/ find an antidote for at a later date I guess.
The one and only answer for bad debt. Debt that will not be repaid or at the very best, is highly unlikely to be paid in some timely manner, is to write it off, per most all accounting standards. Yes, this is what the banks should do, write it off. I insist this be the way, because bankers and their brokers and their whole network of cronies started and accelerated this mortgage mess. Now they should eat it.
FDIC Chairman Sheila Bair praised the idea in an interview on CNBC, saying it might have "some merit."
I had to re iterate that comment from Bair, because apparently these people don't comprehend the enormous amount a billion dollars is. They don't even comprehend that if you come up with a solution it usually should work. It shouldn't be an experiment. It shouldn't just 'might have some merit'.
Look, in any event, isn't this cooking the books?
Government sponsored and approved of course.