Gov't still needs private investors willing to buy banks' toxic assets

And if private investors bid too cheap, banks will not be willing to sell.

 

Stocks slide after weak government debt auction

http://finance.yahoo.com/news/Stocks-slide-after-weak-apf-14744876.html

 

This isn't going to happen, more likely there won't be enough Fed funds to cover all willing "investors". Any bank with toxic assets has every incentive to place 8% of an asset's full value in a "private investor's" hand and have him buy it from the bank with 92% Fed funds. That way the bank can unload any toxic asset onto the Fed with max 8% loss, even if the asset is currently worthless on the open market.

 

Toxic Tim at it again.

 

Yeah....

Unless one was wanting to hand out ¨bargains¨....

Maybe they should call them ¨potential assets¨....

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Just wait till just a regular US Tbill auction fails....

The Brits are just now getting a little taste....

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Then a lot of these multi $Trillion ambitions will
vaporize....