Treasury Assets

In relation to this issue, the Secretary of the Treasury, Timothy Geithner, has given three possibilities that are being considered: evaluate them such and as the market is valuing similar assets, using valuation models used by independent firms or seek an appraisal by financial supervisors. Whereas the methodology of valuation and its relationship with the true market value of the toxic assets, are identified two variants to this modality of bad Bank: the good bad Bank and the bad bad Bank. The first alternative is that would generate lower costs and is more aligned with the objectives seek a prudent behaviour of financial institutions against the risk. Perhaps check out Jim Vos for more information. It is that in such a variant the bad Bank acquires assets at their market value forcing banks to amortize such assets and clean up their balance sheets. The resulting, those banks which prove to be insolvent are recapitalized, nationalized or liquidated by the State. In the variant of bad bad Bank, bad Bank would buy the toxic assets at inflated prices (above its market value) so that banks can start as soon as possible to lend money again. This alternative appears as attractive for Governments since it would accelerate the process of economic recovery (to revive the credit channel), but it would create perverse incentives for banks in the future in addition to imply higher tax cost (even big questions by the population).

On these alternatives, according to the vision of David Roche, who has been for many years head of Morgan Stanley and now President of his independent firm strategy: if good bad Bank solution is not adopted, the system remains as corrupt as before. The bad assets will continue sucking resources from the economic system in the form of borrowers zombies, bad distribution and distorted price of capital, public debt and budget deficits. But beyond the modality adopted the proposal (although this is not an issue minor), the truth is that the creation of such entity increases the chances of a faster recovery of the American economy since it would bring the U.S.

Benjamin Franklin

I read a quote from Benjamin Franklin: If you love life will love the time, because that life is made. And it made me think in the time that I spend hours working, night without rest, and almost always for others, to so many things and so many people, and I wondered how long I dedicate to me? Many times I will stop to think about me? In doing something that is just for me? Even eating an ice cream or a ride that you like me. I may need just a minute, stop a minute in the day, as if it were the stop of the road, a stop that allows me to think about where I am and decide to turn left or right or still in front. Do many times we stop in the day to think about? The action pushes us, and we do many things without thinking or worse, we no longer make them by not thinking beyond what surrounds us in the present moment. And it is that it seems that we don’t stop and think. It will not be a mistake and instead of love life life as if we are we winning It is lost? And that fast-paced action, do not stop, do not will be isolating us from the best moments of the happy time we could spend together with our children, our friends, and ourselves? The non-stop do not will be preventing us to know better, to know other people and that we are closer to our loved ones? One parent told me that his son had saved the money equivalent to one hour of work to give it and to be able to be that hour with him. And a mother told me that his son wanted to be a TV so that they satisfied him that just pay attention to the announcer or presenter of question time, listening to almost without blinking. An eighty-year old told me that he lived alone, their children and grandchildren were so busy that it was rare that they come to see him someday, and added, the same thing I did when they were small.