airjordan167
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Posted: Thu 14:51, 25 Nov 2010 Post subject: \at the same time |
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In many cases, when the banks need in its financial report provide an explanation for such assets, the accounting standards allow banks to use their model to assess the value of these assets, these assets, \(mark-to-model) the price than its current market price is much higher. At a lower price - that is, \financial performance and may result in bank reserve requirements can not be achieved.
However, people still has a lot of concern, including: a new spin-off non-performing assets if the plan eventually to expand the country's debt increased by new debt, then the long run, the economy will suffer.
order to attract investors, these three plans will provide investors with the underlying asset is limited to the \This means that investors such as hedge funds, a maximum loss of its funds for the purchase of these assets. 6:1 ratio of borrowing to invest increases the potential gains and potential losses of investors is limited, because if the loan funds to purchase the assets, the value end of the day less than the purchase price,[link widoczny dla zalogowanych], investors need not be held responsible . In this case, the taxpayer will suffer. If the final value of these investments exceeded the purchase price, then the taxpayer can benefit from, but also earn interest on these loans.
Siegel that, despite hundreds of billions of taxpayers at risk, but only if the investor the value of such assets, a serious miscarriage of justice when the only loss of taxpayer money. Siegel talked about, \on failure
Wharton finance professor Italy Rotterdam Goldstein (Itay Goldstein) added that the loans may be a start \The question is: even if they have a lot of money, the banks may be reluctant to lend, because they fear that other banks will follow up. He talked about such a case: a bank is considering providing loans for a company,[link widoczny dla zalogowanych], and do business with the company to another company also needs a loan. If the second company can not get loans, then it may not be the first company to pay money owed,[link widoczny dla zalogowanych], thus creating the first company could not repay loans on schedule. Fear that this happens,[link widoczny dla zalogowanych], so do not want to bank loans for the company, even if the borrowers in good health. Gothic Stein said: \
the government's theory is: the non-performing assets stripped from the books of banks after the banks will be able to assuage concerns about solvency, so as to stimulate new capital into the banking, so that they can lend out. However, even if they have cash,[link widoczny dla zalogowanych], they will not necessarily lend. \Chete talking about.
Wharton finance professor Frank Lin Yilun (Franklin Allen) about \found, it is a large amount of money. the new plan is likely to re-activate the non-performing asset markets, but he also added that if the plan did not succeed, let the taxpayers empty-handed,[link widoczny dla zalogowanych], he would not be surprised. \the. Even if the Government lost a lot of money from which I would not be surprised. \worth, but if the bad assets on their books from the peel, the banks will once again become a healthy public companies.
Bloom estimated that by providing low-interest loans to allow investors to long-term use, while the huge losses to borrowers without the worry, the Government may encourage investors to compete for these assets to pay high prices. In addition, he expressed doubt that, in order to encourage banks to below sell for good prices of these assets, on bank supervision over the government may be to them by the \
the private sector is critical to this new plan is its attempt to use private sector funding. Last fall, when the \Wharton finance professor Richard Marston (Richard Marston) that the Government has been hoped that the private sector involved in, \at the same time, but also for private investors to participate in assessment of the value of these assets. \to their due time - that is, when all of the homeowners have mortgages pay off when finished - then the value of many assets which will be much higher. Marston spoke,[link widoczny dla zalogowanych], encouraging private investors to buy such assets,[link widoczny dla zalogowanych], will help determine the price of the asset price between the two extremes of a location. He said: \can rapidly stimulate the market. \market participants reluctant to participate in the asset purchase program in the past.
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