Bad Assets on Bank books (Bad Assets Bank?)

The Bad Banks plan to start unclogging the banks balance sheets is in the talks -- and now there is so much discussion on what to pay for these bad bank assets? The banks want a "fair value" of it (which is ofcourse much higher than what the current market value is and incidentally the least amount of money loss) and the Govt doesn't want to pay a value which will cause the tax payers harm or even too low a value which would hurt the banks!

How do you value something that pretty much can't be valued in todays market? How about take the last known value (or in cases where you can value it - that value) and buy it at that value - with a caveat. If the Government makes over 20% (insert your favorite number here - but I say 20%) of profit on selling that asset, then the Banks can have a share of it. The rest of the profit goes directly into shoring up social security. The principal + 20% should go towards paying off the debt.


What do you guys think?

WTF - House of Reps voting on the Stimulus Bill

One of the most important bills was supposed to be passed today in the House of Representatives. It was the stimulus bill. The President (Mr Obama) did his duty and did more than his predecessor (mr decider) did in the past 8 yrs in trying to woo the opposition party as well as his own. For all that effort - this is what he got from them.

The 244-188 vote was not what Mr. Obama had hoped for. A week of presidential wooing -- including a visit to the Capitol, a return visit to the White House by moderate House Republicans and a bipartisan cocktail party Wednesday night -- did not yield a single Republican vote. The president also lost 11 Democrats.

That is most disturbing. While they may have differences, the fact that the entire Republican party didn't vote for it, showed how partisan this has become. I for one, hope that this bill is a huge success, and everyone who didn't vote for it, especially in the house gets crucified in the upcoming elections. They dont deserve this kind a president. I hope Mr. Obama decides that enough is enough and really does play politics with these guys. Then they'll come back to earth!

It's unfortunate that Mr. Obama has got this splat right on him at the start of the Presidency, but he's got to take it as it comes!