Ride of Market

[Anne09]

Emotions of people gets hurt might be because of lack of efforts taken by the Obama government to rescue regarding the stimulus package and plans to fix the banks. The “bad bank” concept has proven to be a disaster when the TRAP was first pass and later falls. How to value these deadly assets now entered on the balance sheet of the banks. If the prices are too low the banks will have to take additional write downs that can harm their capital ratio and in opposite scenario if prices are too high then the taxpayer would provide a gift to the bank debt and stakeholders.