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CaP'N GRuNGe

The Bailout

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uh, the term "toxic" has been used in the industry for a long time. The media didn't make up the term.

 

i'm sure that's the case. the media just salivates so much when they get to say it. heck, even palin said it last night.

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Things have been fairly calm with the PE funds I work on, but some have been adjusting the amount of debt on their books to a more conservative ratio. The way things are going, a lot of people will be looking to private equity for loans, so they could be in an advantageous position. Kinda funny, considering the amount of criticism PE used to get a while back. :wacko:

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Things have been fairly calm with the PE funds I work on, but some have been adjusting the amount of debt on their books to a more conservative ratio. The way things are going, a lot of people will be looking to private equity for loans, so they could be in an advantageous position. Kinda funny, considering the amount of criticism PE used to get a while back. :wacko:

 

Yup ... I manage some private funds, and I'm getting all sorts of requests for all sorts of types of financings.

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Thinking out loud, after having listened to several people here (and elsewhere) comment on the topic at hand ... in an effort to fix the issues of system liquidity (as opposed to keeping people in their homes, which is a whole other issue, imo), here are 11 ideas that would provide a basis for a full vetting prior to implementation and are representative of the types of things that I would consider doing to try to fix this issue, if elected:

 

1) Accelerate the time that the Fed can start paying FDIC institutions for their deposits with the Fed. Currently, banks are required to maintain a certain minimum deposit level at the Federal Reserve, and the Fed does not pay interest on that deposit. Congress has already passed legislation allowing the Fed to pay interest to member banks for deposits. We need to accelerate this so that banks with liquidity will lend to the Fed, who can then lend to member institutions who need funds (but wouldn't be able to get them from the other banks that are currently not trusting one another). This could go a long way towards re-greasing the wheels of credit.

 

Done

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