Subject:
TARP The Troubled Asset Relief Program, commonly referred to as TARP, is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector. It is the largest component of the government’s measures in 2008 to address the subprime mortgage crisis. (Wikipedia Feb 2010)
A suckers rally?
By John Schroy, on May 9th, 2009 |

How long will the rally in US stocks that started in early 2009 last? Remember the ’suckers rally’ of 1932-1933 that signaled the end to the Great Depression too early.
There are three major barriers to a prolonged recovery in stock prices: a trillion dollars or so of executive stock options; the cost of TARP repayments; and the investment needs of retiring Baby Boomers.
Good and bad banks
By John Schroy, on May 8th, 2009 |

In May 2009, the Obama administration divided some of America’s largest banks into ‘good banks’ and ‘bad banks’.
This broke a long-standing practice of protecting the reputation of the US banking system. The Obama government seized TARP funds as an instrument of political power.
Banks, large and small, are now eager to escape the trap of taking TARP funds, which will require them to raise $74.6 billion, either by selling equities on the market, or from profits.
Bank nationalization
By John Schroy, on April 20th, 2009 |

There have been suggestions that the Obama Administration should nationalize the ‘big bad banks’. Is this a good idea?
This article discusses possible consequences of nationalization of Citicorp by the US government.
These consequences may include lost of deposits, loss of customers, greater inefficiency, political favoritism in lending, the decline of Wall Street, and an impact on the US dollar as most favored international reserve currency.
Popular Articles