AmericanTruckersAtWar

Professional, Polite, Prepared to Kill

Here Comes The BARF

Why creating a Bad Asset Repository Fund for Wall Street’s toxic assets could make banking even sicker.

First there was TARP. Get ready for BARF.

They haven’t named it that yet, but calling a federal “bad bank” to soak up toxic assets the Bad Asset Repository Fund would be truth in advertising at least. Despite Washington’s renewed enthusiasm for the idea, there is a strong case to be made against it.

The problem boils down to bank profitability, which is depleted, and the industry’s ability and willingness to lend. Offloading the worst assets into an aggregator fund would still leave banks with loan books under pressure from rising defaults. Banks would still be forced to build reserves at a time when their earnings power is reduced, and that earnings power would only shrink more with a smaller asset base.  More HERE

obamabarfbag

We at ATAW realize conservative capitalists will have a difficult time stomaching BARF and present the official Presidential BARF bag – originally created for the Inauguration and debuted at BlogmeisterUSA, it looks like we’ll have to have a large supply of BARF bags around….

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January 30, 2009 - Posted by | economy, Moonbats, Obama-bots, Politics | , , , , ,

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