Geithner is on the hot seat, and we are placing our faith in his hands, literally, yet next week he will unveil a plan that "sops" up toxic assets AKA bad mortgages. You have to like that word sops, whose bright idea was that one. Geithner is sticking a plain piece of white bread into a steak, cooked ultra rare, dish to sop up the blood drippings - its not appealing. I prefer well done, no sopping required.
Regardless, like every week in the past 6 months, this next one will be telling.
At issue is the quality of Geithner's plan called PPIF - Public Private Investment Fund. The plan must appeal to the financier class or they will head for the hills. If they head for the hills, perhaps a vacation in Rio or Rome, what remains of the old portfolio will begins its famous magic shrinking act once again. This time however, it may pull off the final stunt and almost disappear, or so they are saying.
Its all so screwy, in one week the DOW could be at a new several decade low or dwelling once again in the anemic 7 or 8Ks, which at this point looks like an oasis.
Reuters: Stock investors banking on toxic-asset plan
Details of the Treasury Department's much delayed plan to sop up banks' toxic assets are expected early next week...
Next up in the aggressive campaign to resuscitate the economy is the toxic-asset plan, known as the Public Private Investment Fund, or PPIF...
A disappointing plan could set the stage for a sharp, swift slide in the stock market, but a well-designed one could serve as a catalyst for further gains.
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