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: 4.840909
Views: 3334

Tags: geithner timothy obama plan bailout put option TALF TARP

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Video Comments:
shakaama (January 25, 2010 at 11:09 pm)
@hyperguy61 now that we have 10 months behind your "i don't believe we're in a deflationary period" comment, let's see if you can now see what i saw, see, will be seeing.

The federal reserve has infused over $7 trillion into the economy. that is by definition inflation. However prices have not sky rocketed. why? the inflation is fighting the deflation. One area where that influx has had little impact is in the housing market, which is falling precipitously.
shakaama (January 25, 2010 at 11:06 pm)
@CaronteEmpire woah woah woah, why the cursing and name calling? you'll only make people call you an idiot and slime ball. anything after your cursing and name calling is completely ignored.

idiot.
CaronteEmpire (January 25, 2010 at 5:02 pm)
@shakaama yes dont be an asshole, there hasn't being a huge inflation because banksters are still holding the "legacy assets" (crappy shit assets) and the bailout money hasn't gone to the real economy. But once those mother fuckers will get rid from the legacy assets from their books then you will see the inflationary storm comming. So its better to be prepared, by the way it would it be better to let those faggets fail in first place instead of subsidizing them.
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.

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