{"id":1014,"date":"2009-03-24T10:21:30","date_gmt":"2009-03-24T18:21:30","guid":{"rendered":"http:\/\/hodakvalue.com\/blog\/?p=1014"},"modified":"2009-03-25T21:46:45","modified_gmt":"2009-03-26T05:46:45","slug":"imagine-a-scorpion-waving-cash","status":"publish","type":"post","link":"http:\/\/hodakvalue.com\/blog\/imagine-a-scorpion-waving-cash\/","title":{"rendered":"Imagine a scorpion waving cash…"},"content":{"rendered":"
\"scorpion-cash\"

Shall we dance?<\/p><\/div>\n

The market reacted to Geithner’s asset sale plan yesterday the way you would expect, if you expected a massive transfer of wealth<\/a> from taxpayers to large publicly-traded banks.\u00a0 The banks are basically waiting to sell assets at above-market valuations, and Mr. Geithner is delivering the buyers.<\/p>\n

But how good of a deal is this for the buyers of the assets?\u00a0 Consider a casino advertising a new game that pays out 2-1 for a game with odds of 4-1.\u00a0 That’s a lousy game on a straight bet.\u00a0 But this guy with a high forehead and curly hair is offering to loan you money on the bet.\u00a0 And you don’t have to pay all of it back if the bet goes sour.\u00a0 So your willingness to play this game depends on how much Curly is willing to lend you.<\/p>\n

Now, Curly seems like a reasonable guy.\u00a0 But standing behind Curly are a couple of<\/a> big guys<\/a> who just recently beat the sh*t out of a recent winner, shaking him upside down<\/a> until his winnings dropped out of his pocket.<\/p>\n

Now, how willing are you to play with Curly?<\/p>\n

“If it’s structured correctly, it could really be a very attractive opportunity for private investors, but it also could actually have the government get its money back,” Canning said.<\/p>\n

The heavy criticism by lawmakers of the compensation at giant insurer American International Group (AIG.N<\/a><\/span>), which was bailed out by the U.S. government, is the reason he would prefer to avoid public-private partnership.<\/p>\n

“I don’t need the government’s help in structuring my compensation,” Canning said. “I get all the help I need from my partners.”<\/p><\/blockquote>\n

…says the partner<\/a> in a $5 billion fund.<\/p>\n","protected":false},"excerpt":{"rendered":"

The market reacted to Geithner’s asset sale plan yesterday the way you would expect, if you expected a massive transfer of wealth from taxpayers to large publicly-traded banks.\u00a0 The banks are basically waiting to sell assets at above-market valuations, and Mr. Geithner is delivering the buyers. But how good of a deal is this for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,9],"tags":[],"class_list":["post-1014","post","type-post","status-publish","format-standard","hentry","category-invisible-trade-offs","category-unintended-consequences"],"_links":{"self":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/1014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/comments?post=1014"}],"version-history":[{"count":6,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/1014\/revisions"}],"predecessor-version":[{"id":1017,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/posts\/1014\/revisions\/1017"}],"wp:attachment":[{"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/media?parent=1014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/categories?post=1014"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/hodakvalue.com\/blog\/wp-json\/wp\/v2\/tags?post=1014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}