Tuesday, March 24, 2009
The billion dollar bribe
So the toxic plan is just another bank bailout on the taxpayer, and everybody (except Obama tonite) knows that the dollar has been weak since the Fed announced it's experiment in quantitative easing, of which it will start tomorrow.
A weaker dollar would help our companies, but it's not going to get tagged like the Armageddonistas envision. Look at Obama's press conference tonight. The pseudo journalists were asking questions about the possibility of a new reserve currency for the world. That same talk had to be categorically denied in the Congressional Inquisition of the Fed heads today!
And the talk of our debt being downgraded is just silly. After all, who is rating the new securitizations from the TALF?
It's been estimated that $1 billion will flow through the TALF to the rating agencies pockets. The WSJ estimates that the rating agencies will receive $30,000-$120,000 for every $100 million of structured securities that they will rate.
Pretty soon you are talking real money. The billion dollar Government bribe!
But a US debt downgrade? By the rating agencies that are being fed at the Government's trough?
Ain't going to happen folks.
The rating agencies already have "three" categories of AAA debt, as the picture on the top of the page shows. Resistant, Resilient, and Vulnerable.
And in this economy, does anybody really think that the rating agencies are going to downgrade our Government debt, and forego their fees?
Forbearance still reigns.
Despite the CNN headline articles like that below!
Should USA still be AAA?
....Some think the U.S. may not be able to hold on to its perfect credit rating indefinitely considering how much money the Fed, Congress and the Treasury Department have thrown at the economy in their attempt to lift it from this recession.
But the billion dollar bribe sure doesn't hurt!
Posted by Palmoni at 9:49 PM