Wall Street Reacts Positively to Obama, Geithner Toxic Assets Plan
By Bonnie Erbe, Thomas Jefferson Street blog.
Finally, President Obama is showing us that he is using his powerful intellect and, perhaps, giving us a clue as to why he continues to defend his treasury secretary against all reason. World markets clearly responded positively to his public-private partnership plan to rid banks of so-called toxic or troubled assets, otherwise known as delinquent mortgages that never should have been given out in the first place:
Initially, a new Public-Private Investment Program will provide financing for $500 billion in purchasing power to buy those troubled or toxic assets—which the government refers to more diplomatically as legacy assets—with the potential of expanding later to as much as $1 trillion, according to a fact sheet issued by the Treasury Department.
The market endorsement was in sharp contrast to how the market has responded to his other economic stimulus measures. The Dow was positively downbeat about his pork-laden stimulus plan. Mr. Obama provoked a very different reaction to this market-oriented approach, which sent the Dow and other indices worldwide skyward as soon as the announcement became public. President Obama says he pays no attention to daily market fluctuations. But he ignores the market entirely at his own political peril. And this president is very much about trying to keep all factions happy--including Wall Street.
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Tags: economy | Wall Street | stock market | Obama administration | Tim Geithner
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Reader Comments
Wall Street Elitist
I have been watching Wall Street and I know it is controlled by Americas' aristocrats the inbred pedigree families that run this country thru their power and wealth.
They have been waiting for the U.S. government to take the toxi assets even though they caused them, and President Obama waited to deal with them last.
They have been exposed and everyone sees exactly who they are, and how they are playing the game.
Yes, they do want to control the President, but I do not think he will fall for it. What they are showing him is that they can either make or break him with Americans so they think they can control him but I think President Obama will show them something they have never seen before.
Let Virtuous Wall St Point the Way
If Wall St gets to call the shots for Obama, as you suggest; maybe we should just skip the step of electing a president. We could just appoint the greediest, richest Wall St investment banker to lead us down the primrose path, enriching their cronies and writing off the rest of us. After all, the president has been in office two whole months and he is only just now FINALLY doing SOMETHING to instill your confidence. What a slacker he has been!
Donald Trump, or maybe that other guy with the ten million dollar office. Maybe we could get them to serve as president, if we kicked in about a $6,000,000 bonus.
As to the "toxic assets" ie, the mortgage loans that you say never should have been written for those of us who comprise the"great unwashed" out there; you can bet your bippy that somebody will make a bundle on those. Otherwise those private investors would not be ponying up to take a chance. I just hope the great unwashed taxpayer will get thrown a bone or two somewhere along the way.
Wall St Boys Play Obama
Be for real, Wall St Elitists play the market and they play Obama too.
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