From Peter Tchir of TF Market Advisors
I was always told that people might think you are stupid but if you speak, you run the risk of them knowing that you are stupid.
Europe is going to bail out the 16 weakest banks? Banks that are in trouble because the PSI for Greece is worse than any stress they ran. Plans should be getting made for these banks to die but to possibly save the creditors and limit systematic risk.
The focus should be on putting together plans for the big banks that pose real systematic risk. The market knows the stress tests were a farce, so why make a plan to save those that barely survived that low hurdle. Didn't they learn anything from dealing with Greece. Giving minimal help to the worst institutions is NOT going to solve anything and just shows how far behind they are in their thinking.
If they are going to TARP anyone they should take into account Warren Buffett's secretary. If it is unfair for her to pay a lower tax rate, it should be equally unfair for her to get a worse investment. Any TARP should be done at terms better for the taxpayers than Warren got. The citizens deserve at least that much for keeping banks alive and it's only fair. If it was a reasonable price for Warren it should be one banks can agree to give to governments.