What exactly does this term "a bank's toxic assets"

zyzzyva57 · 02-23-2009, 08:53 PM

In my own life I know what it means

I suspect with Master Card or Visa this would mean those accounts not paying

Does not Master Card simply at some point peel them off, i.e., write them off, and then sell them to Vulture Investors, i.e., those collection agencies who will attempt then to collect something from each account they buy greater than what the collection agency paid?

Then, would it not behove Widget Bank simply to cut its loses, sell its non-performing loans for say an average of ten cents on the dollar, and then move on--sure, take a hit, that is, and then in a sense "reboot," for otherwise, the crisis only worsens

Why is this such a problem with banks to fess up, take its hits, reboot, and move on and with Treasury Secretary Geitner simply doing a Mafia Godfather with the banks by telling them to do so by such and such date?

Isn't ultimately doing this what will have to be done?

What am I missing?

XOM · 02-23-2009, 09:34 PM

I think the problem is that any such selling would take that 10% and knock it down even further, typical supply and demand problem.

win/win · 02-24-2009, 07:29 AM

Federal Reserve Bank ???

Hondaboy · 02-24-2009, 07:57 AM

Quote:

Originally Posted by win/win

Federal Reserve Bank ???

O man not this movie. Not sure if you know but that movie copied most of there film from other movies but the person how did this movie marketed much better.

win/win · 02-24-2009, 08:23 AM

Quote:

Originally Posted by Hondaboy

O man not this movie. Not sure if you know but that movie copied most of there film from other movies but the person how did this movie marketed much better.

Yes, puts rat and fink together, peels the onion pretty well as Ron Paul rips the Fed to pieces along with Jim Rogers hard to argue with those two gentlemen.

ZaNoob · 03-01-2009, 02:05 PM

poof, n/m.

mo_dingo · 03-02-2009, 07:48 PM

assets that depreciate in value, and/or turn into a liability!!!

Kitten Zuponi · 03-05-2009, 07:30 PM

I'm responding to this more as a disgusted 'play by the rules type' than an investor.

(I've givin up on any hope of figuring out how the market works. It's beyond my grasp. I hope the dow hits zero & I can just get over the miserable lie of buy & hold. I regret ever getting sucked into that 401-k crap. Where IS all my money anyway?)

That said, I'm curious why these banks are literally screwing the people that ARE paying?
I've had my interest rates jacked up due to carrying a higher balance than I have in the past.
Despite the fact I have never missed a payment and never pay late.
I don't expect a free ride, but it just seems insane that some dip chit like me is getting shafted just to cover some schlepp banks losses.

Utilizing my credit cards while in this wretched economy wasn't my first choice for paying for things, but it got to that point where groceries had to be charged. Husbands laid off, my hours were cut... ect ect....
I would think, if anything, they would be receptive to suggestions of LOWERING valued *paying* customers rates instead of raising them!

I'd buy 20 Ramen noodles instead of 4 if I wasn't getting raped!

I'm sure this is the wrong forum for this spiel, but it just aggrevates me that these effers are getting bail outs then turning around & screwing the taxpayers that friggin bailed them out!

It's so very frustrating....

XOM · 03-05-2009, 07:41 PM

I can empathize with your dilemma, I think Mr. Carlin addressed the situation a time or two in the past;

zyzzyva57 · 03-05-2009, 08:43 PM

Kitten, when you reach the presidency you are simply cut-off from reality

The perks blind you...

The flunkies blind you...

A president is so isolated from reality he has no empathy

Look how out of it Bush became

By the time a president chews his way to the office he is isolated

He surrounds himself with experts and look what happened with Kennedy's use of "best and brightest"

Even if a president wanted to sneak out to see how the rest of us lives, the secret service would have a fit

Let me scare you some more: wait till Obama has his "9/11" moment, which he will

I don't mean necessarily a terrorist hit, but a catastrophic something no one expected, except in retrospect

We are burning up any insurance for recovery, as we had after an actual 9/11

I think this scares me more than anything: Obama's/our next "9/11" moment

We are so naked already...

02-23-2009, 08:53 PM	#1
zyzzyva57 forum leader Join Date: Sep 2005 Location: Dawsonville, Ga (50 miles northeast of Atlanta) Posts: 1,710	What exactly does this term "a bank's toxic assets" In my own life I know what it means I suspect with Master Card or Visa this would mean those accounts not paying Does not Master Card simply at some point peel them off, i.e., write them off, and then sell them to Vulture Investors, i.e., those collection agencies who will attempt then to collect something from each account they buy greater than what the collection agency paid? Then, would it not behove Widget Bank simply to cut its loses, sell its non-performing loans for say an average of ten cents on the dollar, and then move on--sure, take a hit, that is, and then in a sense "reboot," for otherwise, the crisis only worsens Why is this such a problem with banks to fess up, take its hits, reboot, and move on and with Treasury Secretary Geitner simply doing a Mafia Godfather with the banks by telling them to do so by such and such date? Isn't ultimately doing this what will have to be done? What am I missing?

02-23-2009, 09:34 PM	#2
XOM valued contributor Join Date: Feb 2008 Location: In your gas tank Posts: 651	Re: What exactly does this term "a bank's toxic assets" I think the problem is that any such selling would take that 10% and knock it down even further, typical supply and demand problem. __________________ A man begins cutting his wisdom teeth the first time he bites off more than he can chew. Herb Caen

02-24-2009, 07:29 AM	#3
win/win valued contributor Join Date: Jul 2008 Location: Grosse Pointe Park. Posts: 85	Re: What exactly does this term "a bank's toxic assets" Federal Reserve Bank ???

03-01-2009, 02:05 PM	#6
ZaNoob valued contributor weekly challenge winner 3x Join Date: Jun 2008 Posts: 371	Re: What exactly does this term "a bank's toxic assets" poof, n/m.

03-02-2009, 07:48 PM	#7
mo_dingo valued contributor Join Date: Mar 2009 Posts: 113	Re: What exactly does this term "a bank's toxic assets" assets that depreciate in value, and/or turn into a liability!!! __________________ The time has come for us to see. What we are now asked to worship, what has once been dressed as God or King, is the naked, twisted, mindless figure of the human incompetent. – Ayn Rand

03-05-2009, 07:30 PM	#8
Kitten Zuponi new member Join Date: Sep 2008 Location: Portland,Maine Posts: 10	Re: What exactly does this term "a bank's toxic assets" I'm responding to this more as a disgusted 'play by the rules type' than an investor. (I've givin up on any hope of figuring out how the market works. It's beyond my grasp. I hope the dow hits zero & I can just get over the miserable lie of buy & hold. I regret ever getting sucked into that 401-k crap. Where IS all my money anyway?) That said, I'm curious why these banks are literally screwing the people that ARE paying? I've had my interest rates jacked up due to carrying a higher balance than I have in the past. Despite the fact I have never missed a payment and never pay late. I don't expect a free ride, but it just seems insane that some dip chit like me is getting shafted just to cover some schlepp banks losses. Utilizing my credit cards while in this wretched economy wasn't my first choice for paying for things, but it got to that point where groceries had to be charged. Husbands laid off, my hours were cut... ect ect.... I would think, if anything, they would be receptive to suggestions of LOWERING valued paying customers rates instead of raising them! I'd buy 20 Ramen noodles instead of 4 if I wasn't getting raped! I'm sure this is the wrong forum for this spiel, but it just aggrevates me that these effers are getting bail outs then turning around & screwing the taxpayers that friggin bailed them out! It's so very frustrating....

03-05-2009, 07:41 PM	#9
XOM valued contributor Join Date: Feb 2008 Location: In your gas tank Posts: 651	Re: What exactly does this term "a bank's toxic assets" I can empathize with your dilemma, I think Mr. Carlin addressed the situation a time or two in the past;

03-05-2009, 08:43 PM	#10
zyzzyva57 forum leader Join Date: Sep 2005 Location: Dawsonville, Ga (50 miles northeast of Atlanta) Posts: 1,710	Re: What exactly does this term "a bank's toxic assets" Kitten, when you reach the presidency you are simply cut-off from reality The perks blind you... The flunkies blind you... A president is so isolated from reality he has no empathy Look how out of it Bush became By the time a president chews his way to the office he is isolated He surrounds himself with experts and look what happened with Kennedy's use of "best and brightest" Even if a president wanted to sneak out to see how the rest of us lives, the secret service would have a fit Let me scare you some more: wait till Obama has his "9/11" moment, which he will I don't mean necessarily a terrorist hit, but a catastrophic something no one expected, except in retrospect We are burning up any insurance for recovery, as we had after an actual 9/11 I think this scares me more than anything: Obama's/our next "9/11" moment We are so naked already...

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