Obama Administration Bungles Toxic Asset Program Thanks to Timothy Geithner!
by TexasGOPVote on January 5, 2010 at 4:59 PM
Here's a great demonstration of the adverse effects of big government programs concocted by Obama administration officials like failing Treasury Secretary Timothy Geithner.
Today's exhibit is the Public-Private Investment program, or PPIP, which was unveiled by the Treasury Department in March of last year. Instead of getting toxic assets off their books, the Public-Private Investment Program has encouraged banks to take on more toxic assets because the government made them more marketable! Some of the nation's largest banks are making a killing in the process!
It’s "absolutely ridiculous” that banks, which were expected to reduce their holding of such volatile mortgage securities, bought them before the government program was running and may now profit, said Michael Schlachter, managing director of Wilshire Associates, the Santa Monica, California- based investment-consulting firm. “Some of them created this mess, and they are making a killing undoing it.”