Comments on: Bad Asset Details Send Stocks Higher http://www.everyjoe.com/articles/bad-asset-details-send-stocks-higher/ Sports News - Tech Reviews - Entertainment - Life Tips for EveryJoe Fri, 18 Dec 2009 02:35:45 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Tisa Silver http://www.everyjoe.com/articles/bad-asset-details-send-stocks-higher/comment-page-1/#comment-339019 Tisa Silver Wed, 01 Apr 2009 03:28:59 +0000 http://www.bizzia.com/?p=16407#comment-339019 This is a tricky situation. Waiting for asset values to rise keeps bank balance sheets bogged down, but they need cash now. Creating a market for these assets opens the door for the buyers to set and/or manipulate the value of the assets. As you said, buyers wouldn't buy unless it was a worthwhile deal and who knows what the assets are really worth. This is a tricky situation. Waiting for asset values to rise keeps bank balance sheets bogged down, but they need cash now. Creating a market for these assets opens the door for the buyers to set and/or manipulate the value of the assets. As you said, buyers wouldn’t buy unless it was a worthwhile deal and who knows what the assets are really worth.

]]> By: Jim http://www.everyjoe.com/articles/bad-asset-details-send-stocks-higher/comment-page-1/#comment-339018 Jim Thu, 26 Mar 2009 22:05:57 +0000 http://www.bizzia.com/?p=16407#comment-339018 It was nice to see the market's reaction to the fact that long awaited plan has been delivered and is better than the first attempt. Jury is still out on whether it will work. The deal looks pretty sweet on the buy side with government loans and the government assuming all the risk. But if these securities are such a sweet deal for the hedge fund crowd, why would the banks sell? Don't they stand a good chance of being able to write up the value of these assets as the market improves? Therein lies the problem. Oh course the hedge fund crowd could do bear raids on these institutions to force them to sell, but I hope our regulatory agencies will be more vigilant and prevent this from happening. It was nice to see the market’s reaction to the fact that long awaited plan has been delivered and is better than the first attempt. Jury is still out on whether it will work. The deal looks pretty sweet on the buy side with government loans and the government assuming all the risk. But if these securities are such a sweet deal for the hedge fund crowd, why would the banks sell? Don’t they stand a good chance of being able to write up the value of these assets as the market improves? Therein lies the problem.

Oh course the hedge fund crowd could do bear raids on these institutions to force them to sell, but I hope our regulatory agencies will be more vigilant and prevent this from happening.

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