The bad bank plan is a return to the Resolution Trust Corp. (RTC) scheme which resolved the S&L crisis in the mid-1990's. Assests acquired by the feds were auctioned off at absolute auctions over the course of 2 years (1993-1995). Expect the bad bank plan will do the same.
There will be some unbelievable opportunities at these absolute auctions ... think 10-20 cents on the dollar. But cash will be king. You heard it here first.
It'll take some time for this thing to play out ... I imagine a year or two for the gears to begin to turn. So save your pennies!
Treasury details public-private plan for banks' toxic assets - MarketWatch
__________________
FIRE'd since 2005
|
Threaded Mode
