Those TOXIC ASSETS are worth about 10-15 cents on the dollar right now. Congress should change the 401K rules so that we can instruct our people (IE, in my own case TIAF-CREF)to issue us letters of credit that allow us to use the money we have in our 401 K accounts (without penalty)to purchase those toxic assets and sit on them ourselves...we have been FORCED to sit on assets and keep our money in funds because we could not afford the unfair TEN PERCENT PENALTY imposed on it...well, let us DUMP our bonds, get out of our funds and instead at our choice BUY TOXIC ASSETS at bargain basement prices. At 20 cents on the dollar, I can go out right now under MY PLAN outlined in this one paragraph and buy up (at AN OPEN AUCTION) some $1.5 Million worth of assets (at their pre disaster value). Let's say I picked up 15 foreclosed CONDO's as example. (Remember, we are BUYING TOXIC ASSETS, they are greatly depressed.) I guarantee you I could have those Condo's RENTED OUT in 60 days at lets say BARGAIN PRICES of $300 a month plus overhead (IE, commons fees). I own 15, which brings in $4500 a month in income...times a year is $54,000 that I could put back into the stock market. Tell me where I am going to get that kind of a return at in my 401K? Why do the BIG INVESTORS GET THE HUGE BREAKS, WHY ARE YOU KEEPING OUR FUNDS TIED UP IN EVER DECLINING 401K's?
Christina D Romer, you ARE DEAD WRONG...we here on Main Street see President Obama, his worthless Treasury FLUNKY Geithner doing business as usual, which is figuring out how you can get the Nation out of this mess in a fashion that lets the RICH AND ELITE EVENTUALLY TURN A HUGE PROFIT ON OUR PAIN....that is not going to happen! Do not try to bullshit us by painting these BARRACUDAS out to be NICE GUYS...anyone on Wall Street is A FUCKING CROOK, and we are tired of it...you people want to deal with the Toxic Assets, COME DEAL WITH US HERE ON MAIN STREET!
Some of them have told administration officials that they would participate only if the government guaranteed that it would not set compensation limits on the firms, according to people briefed on the conversations. The executives also expressed worries about whether disclosure and governance rules could be added retroactively to the program by Congress, these people said.
A spokeswoman for the Treasury declined to comment on the conversations over the weekend.
Administration officials took to the airwaves Sunday to reassure investors that the public would distinguish between companies like A.I.G., which are taking government bailout money, and private investment groups that, under this latest plan, would be helping the government take troubled assets off the books of some of the country’s biggest banks.
“What we’re talking about now are private firms that are kind of doing us a favor, right, coming into this market to help us buy these toxic assets off banks’ balance sheets,” Christina D. Romer, the White House’s chief economist, said in an interview on “Fox News Sunday.”
“I think they understand that the president realizes they’re in a different category,” she said, adding, “They are firms that are being the good guys here.”
Geithner says need private-sector help: report
WASHINGTON (Reuters) – U.S. Treasury Secretary Timothy Geithner said on Sunday that help from the private sector was critical to get toxic assets off banks' balance sheets and help resolve a credit crisis.
"Our judgment is that the best way to get through this is if we can work with the markets," Geithner said in an interview with the Wall Street Journal. "We don't want the government to assume all the risk. We want the private sector to work with us."
Geithner is set to reveal details on Monday of a plan to set up public-private investment funds that could buy up to $1 trillion in troubled loans and securities at the heart of the financial crisis.
The Journal said Treasury believes participants in the program shouldn't be subject to executive-pay rules imposed by Congress. The law authorizing a $700-billion bailout and a provision in a $787-billion stimulus package impose tough pay restrictions on firms that receive government funds, including limits on bonuses.