6 Comments for this entry

1. John M. says:

   October 13, 2008 at 7:35 AM

   you can’t make these things up …

   “Treasury to Invest in ‘Healthy’ Banks, Kashkari Says”, by By Rebecca Christie and Robert Schmidt, Bloomberg October 13, 2008.
   

   Neel Kashkari, the U.S. Treasury official overseeing the $700 billion rescue of the financial system, said government equity injections will be aimed at “healthy” firms.

   “We are designing a standardized program to purchase equity in a broad array of financial institutions,” Kashkari, who heads the department’s Troubled Asset Relief Program, said in a speech in Washington. “The equity purchase program will be voluntary and designed with attractive terms to encourage participation from healthy institutions.”
2. toysarefun says:

   October 13, 2008 at 10:33 AM

   TARP. Now that just about sums it up.
3. twist says:

   October 13, 2008 at 3:20 PM

   John-

   If the terms are attractive and these institutions are healthy, why are these deals not being done by private industry?

   The other question this article brings up is why Kashkari manages to make this sound like a wierd adaptation of a game show?

   
   

   Three firms are finalists to be the Treasury’s “master custodian,” to be announced in 24 hours to serve as the prime contractor, Kashkari said. The Treasury has tapped law firm Simpson Thacher & Bartlett LLP and investment consultants Chicago-based Ennis Knupp & Associates for roles in the program. More selections are expected in coming days, he said.
4. John M. says:

   October 13, 2008 at 3:46 PM

   twist -

   When we were in Social Studies in Junior High we wrote out two-page holograph assignments on The Causes of World War I and learned from the teacher about the majestic unfolding of historical events.

   Now that we are living in the middle of one of the beasts we are finally learning the truth — history consists of randomly chosen, desperately sleep deprived actors making it up as they go along.
5. Doug says:

   October 13, 2008 at 5:52 PM

   Hey Doomers,

   My new video about Billings (Montana) real estate is out. We’re slow to turn here, so this ought to look like 2-year-old deja vu to the rest of the country.

   Housing Boom in Billings
6. Real-Estate-Blog says:

   October 14, 2008 at 8:01 AM

   Hi Doug – I definitely believe there is a spill-over element to the U.S. housing market as I wrote in an article on our blog.

   There was a clear correlation between equity build-up in areas like California. Equity refinance funds spread to markets like Boise, ID, Phoenix, AZ, Las Vegas, etc. From there, money spread to areas like Charlotte, NC, Nashville, TN, etc.

   Finally, generally speaking, markets like Montana started seeing a move. Areas like Spokane, WA and Wenatchee, WA have been doing quite well too in the face of CA, NV, AZ, FL, etc.

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