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0 sats \ 6 replies \ @Undisciplined 2 Dec 2023 \ on: Europe: Sprouting Special Assets meta
Is the "Special Asset" move the one where they take them off of the liability side of the ledger and move them to the asset side with a negative present value. I recall either the Fed or the US Treasury doing a move like that.
Yes. It's like that
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Not sure whether a similar notion was named good bank/bad bank, circa 2008
After specific bank failures, they just bury some toxic debt in a radioactive landfill and strip any remaining assets to pump into some share offering that ultimately gets refinanced by the public and takes a hit.
Special Assets .. Credit Crunch.
Sounds like making the unpalatable, palatable.
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It's always the same principle. The state takes on debt to prop up ideological projects and to keep the masses calm with ''initiatives'' and welfare bs that destroys in the end the basis of society (family, middle class, free entrepreneurship). Than they default in numerous of their institutions just to hide the insolvent debt in new ones or hidden balance sheets. And so on.
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If I'm remembering 2008 correctly, the Fed bought bundles of "distressed" assets off of the banks at roughly pre-recession market prices and claimed that they were going appreciate over time (when everybody knew they were going to remain worthless).
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I guess we can call this ''reflating'' the bubble. That's what they'll do again.
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In that case, you're onto their scheme faster than anyone caught onto it over here.
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