Geithner Plan IV


Quantifying the value of the put option







Channel: Education
Uploaded: March 30, 2009 at 3:27 pm
Author: khanacademy

Length: 00:14:01
Rating: 4.904762
Views: 2827

Tags: geithner timothy obama plan bailout put option TALF TARP

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Video Comments:
AUTubeN22 (September 10, 2009 at 6:46 am)
how can the banks show a lagitimate cash flow statement if they are to run like other businesses how can they keep buying worthless assets&payout dividends at some point down the line they have to produce real visible solid cash!
grassflying (April 7, 2009 at 4:31 pm)
Great videos on asset allocation! Another way to view the plan is that it enables you to invest $4.5 and get the same upside as a $30 direct investment in these toxic assets. The downside of both methods are the same: almost wiped out. People investing in this area should have a very good understanding of what they are investing in. It may take a lot of efforts to discriminate the profitable assets from the bad ones.
wmacorlando (March 31, 2009 at 3:24 am)
the private investors are the banks that are holding the toxic assets - just like you predicted!
hyperguy61 (March 30, 2009 at 7:26 pm)
not sure what you mean by "artificial". all i am saying is that whether it is in 6 months or a year , or 2 years , eventually all this money printing will come home to roost. i dont think it can be manipulated indefinitely. it's just easier for the US because the dollar is the reserve currency.
shakaama (March 30, 2009 at 7:19 pm)
so you think the dollar rally is not artificial?

Why are all us Austrian school guys scratching our heads. All market indicators say the dollar should have already had skyrocketing inflation in 2007.

Instead of scratching my head, and viewing how gold is being supressed, I see no other indicator than it's being manipulated. If so, then that manipulation can continue indefinitely.

See i'm quite logical. [you can come back in 6 months when the dollar is still rallying and tell me i'm right]]
hyperguy61 (March 30, 2009 at 7:02 pm)
the demand for the dollar due to deleveraging creates temporary demand for the dollar . temporary is the key. skyrocketing coming ..... just give it some time come come back home .....
shakaama (March 30, 2009 at 6:58 pm)
Well that just goes to my point about the manipulation of the dollar. Hmm as to deleveraging, that doesn't quite fit. Although deflation doesn't either. I think the proper term is stagnation or a downward stagnation to be completely precise.

as to doesn't fool you. with the introduction of ... now $10 trillion, prices should have been skyrocketing. however America is changing its buying habits [stagnation] so that there isn't rampant consumerism.
hyperguy61 (March 30, 2009 at 6:52 pm)
hi. i respect and appreciate the conversation we are having. but i respectfully disagree that we are in a deflationary situation. we are in a deleveraging situation. asset prices are falling , this is not deflation. the fact that we havnt felt or seen the effects of our governments inflationary monetary policies yet , doesnt fool me. inflation is coming and it will be rampant imo. peace
shakaama (March 30, 2009 at 6:42 pm)
I don't know if you've been paying attetion but we're actually in a deflationary situation.

[i suspect, and yes this is conspiracy theory, the dollar LIKE GOLD is being manipulated and these aren't true market indicators] Can the dollar maintain its current rally?

Well can the American government coerce foreign countries to keep devalueing their own currency vs the dollar? actually it's worked for over 30 years so far.

So it could be no inflation. which goes to my first answer.
hyperguy61 (March 30, 2009 at 6:03 pm)
by "taxes" i meant either the traditional taxes or taxing through inflation , which is worse , imo.

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