The New Private-Public Bank

In the next few days, Treasury Secretary Timothy Geithner will unveil his plan for public-private partnerships that will begin the process of removing toxic assets from banks balance sheets. The final plan is still being formulated but the concept would be for the government to finance and participate in the purchase of these assets. The private sector will have to invest some equity in these deals and will help determine the purchase price. If this process is successful, a market will develop for these toxic assets and the banks will begin to clean up their finances. The private investors such as hedge funds will only get involved if they believe that they can trust the government to stay 'out of their business'. The AIG bonus debacle has to fade from view so that we can get back to solving our problems.

Random thoughts....the first quarter ends in nine days...earnings reports for financial companies will be released around April 10th or so....look for upside surprises from most banks....optimism would help.....how will gold and the dollar behave for the next few months?...please leave Geithner alone and let him live....