Couple thoughts on Geithner's plan (aka 'TALF'). First, seems like Wall Street has finally warmed up to him, no longer does the market free fall every time he opens his mouth. Now, it does seem like this whole plan is a bit of a stretch of the FDIC's role and the details seem to be a huge win for anyone participating (with the exception of the tax payer). So in the end, this is another bail-out that's disguised as a market making mechanism. Socialism here we come.
One thing I would like to see is an ETF or Mutual fund established to allow some of us main street investors to participate in the TALF program. I mean if I have almost no risk and could stand to make some serious returns I want my piece of the pie. Let's hope Bill Gross hooks up the rest of us with a deal like this.
A quick final piece on mark-to-market (MTM), can't wait to see the relaxed reporting requirements combined with a pseudo-market created by the TALF. What a mess!