Nobody has shown interest in buying banks' toxic assets?

Discussion in 'Economics' started by crgarcia, Mar 30, 2009.

  1. Yet?
  2. In case you haven't figured it out yet, it is not yet on wall street's agenda to buy stocks. You could throw $50T of cash at the market and the media/market would find a reason to make it go down (government corruption or compensation issues is an easy 'reason').
  3. CET


    You are incorrect. There is plenty of money wanting to buy the toxic assets, but the buyers want to pay much less than the banks/holders are willing to take. In the end the banks may just have to hold these assets and muddle through if they can.
  4. I have read numerous reports stating that there are indeed many interested buyers for this, but the financial intitutions refuse to sell at the stated market price. They believe that alot of this crap has more value to it thaan what the market is saying and with government support, they are not going to "hit the bid".

    Now, if the guv wasn't shelling out to them, I am certain you would see many of these transactions taking place.
  5. On top of what has previously been stated, I think the potential investors are a little leery of getting in bed with the government ... it might comeback to haunt them at some future date. :eek:

  6. crgarcia has not stopped opening new & stupid

    threads, and then disappearing from the

    discussion, YET???
  7. bit


  8. CET


    As I understand it each batch much be evaluated individually, but Merrilll set a low bar for their sell at $0.22, as best I recall.
  9. I think that's right.

    Banks want to claim "$.80"... privateers want to bid $.30. But if banks accept that as value, their balance sheets will be wiped out. What to do... ??
    #10     Mar 30, 2009