Several poeple on CNBC think it's going to 1.00.
CNBC are just a bunch of jokers ! THEY've created the last sell off friday by providing false informations LIVE !
These stupid "PRO" analysts made me sold my FAS for a ridiculous profit !
Here is the truth about the Obama Plans :
31-01-2009 12:15 Obama pledges mortgage help with new financial plan
WASHINGTON, Jan 31 (Reuters) - U.S. President Barack Obama promised on Saturday to help lower Americans' mortgage costs with a new plan, coming soon, that would revive the financial system and 'get credit flowing again.'
Obama, who has made fighting the country's economic and financial crises the top priority of his young administration, called on the U.S. Senate to approve an economic stimulus bill that the House of Representatives passed this week.
But as economic conditions get worse the president said new strategies were coming to address the country's ills.
'Soon my Treasury secretary, Tim Geithner, will announce a new strategy for reviving our financial system that gets credit flowing to businesses and families,' Obama, a Democrat, said in his weekly radio address.
'We'll help lower mortgage costs and extend loans to small businesses so they can create jobs.'
Copyright Thomson Reuters 2009.
"A big bang plan to clean up US banking system"
By Krishna Guha in Washington
Published: January 30 2009 23:31 | Last updated: January 30 2009 23:31
The big bang announcement by US Treasury planned for next week is likely to have three key economic elements: moves to clean up the banking system, moves to restore the flow of credit in securitised financial markets, and moves to reduce home foreclosures.
The exact shape of the banking sector clean-up plan has still not been finalised. But it is likely to involve elements of both a “bad-bank” solution and insurance-style guarantees on pools of problem assets that remain on bank balance sheets.
Assuming this approach is approved, the bad bank would be capitalised with equity from the Treasury’s troubled asset relief programme (Tarp) and take on debt, possibly guaranteed by the Federal Deposit Insurance Corporation (FDIC), with some Washington insiders estimating it would have about $1,000bn purchasing power.
It would acquire securities that had already been heavily marked down by financial institutions, probably using a valuation model rather than an auction-based process to determine pricing.
The US authorities may also provide insurance-style guarantees on pools of problem assets that remain on bank balance sheets. This approach is seen by some as better suited to assets that have not yet been heavily written down and for loan portfolios that are in the early stages of deterioration. The bank clean-up is likely to be paired with a revamped recapitalisation scheme, involving a thorough overhaul of Tarp.
Additional restrictions on executive pay and excessive dividends are likely, in an effort to avoid leakage of public capital to employees and shareholders, as well as to shore up public support for the unpopular process.
Treasury is also likely to announce a separate battery of moves designed to revitalise the securitised markets for credit. This could involve a scaling up of an existing Treasury-Federal Reserve joint venture called the term asset-backed securities loan facility, which provides low cost loans for investors willing to buy new securitised consumer loans.
This approach may also be used to try to restore the flow of credit for commercial mortgage-backed securities, jumbo mortgage-backed securities and municipal bonds. It is possible that the Treasury could offer some credit guarantees in a further effort to boost credit flows, though some policymakers are hesitant.
The foreclosure relief element of the package is likely to commit tens of billions of dollars to support schemes that aim to lower monthly mortgage payments to no more than 38 per cent of income, though it will probably also include backing for loan principal reductions in cases where the mortgage is worth a lot more than the value of a home.
The 38 per cent limit has emerged as a rough consensus among policymakers, as the standard used by the FDIC, Fannie Mae and Freddie Mac, the Hope Now alliance of mortgage servicers and recently the Federal Reserve.
The Fed recently announced plans to support loan modifications to reduce monthly payments to no more than 38 per cent of income and to support principal writedowns for loans worth 125 per cent of the value of a home or more, for mortgages owned or part-owned by some of its special purpose vehicles. While this is a Fed-only programme, it provides some indication of where Treasury’s thinking may come out.
Obama economic officials see the backing for banks and credit markets on the one hand, and housing on the other, as part of a three-legged stool – the other being the fiscal stimulus plan before Congress.
(...)
Copyright The Financial Times Limited 2009
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Keep buying the Cramer stocks and watching CNBC. They REALLY know what is going on... LMFAO!!!
We could see a nice short squeeze next week....
Topic: C - Citigroup, Inc. - NYSE (Read 35644 times)
