personova (November 30, 1999 at 12:00 am)

For TARP, the majority of equity infusion was in the form of preferred stock and warrants.

o0stonedagain0o (November 30, 1999 at 12:00 am)

The federal reserve in no more federal than federal express. It is a foreign private central bank whose board members are held secret. So when you say our national debt is owed to ourselves that is flat out lie. You need to bone up on some history before you call yourself an economist. Do you know what money is or how it is created? In a true free market system there is no need for any regulatory body to adjust the 'supply' of money or interest rates. Stop reading Keynes and start reading Mises

Andersxman (November 30, 1999 at 12:00 am)

So is an "Equity infusion" what Goldman Sachs did recently to raise $6bn? I haven't been following that closely, but it doesn't seem to me that the shareholders in Goldman got hit by this latest move? If Goldman didn't do an Equity Infusion, then what was it they did?

JLZesbaugh (November 30, 1999 at 12:00 am)

Well if the SWF fund it self was concerned about going bankrupt, say due to a entitlements issue. It would need to make long term investments. The model here shows a functional bank, with toxic assets. Or "the fundamentals are of our economy are strong". This is just a momentary blip, to allow the SWF long term investments to pay entitlements. Is my guess...

delegate21 (November 30, 1999 at 12:00 am)

Because the SWF would then own 80% of the bank, and it's in their best interest for it to stay afloat, and that requires them paying over the market value for them, instead of just buying more. If they simply bought more shares, they would dilute the share value further, thus losing money etc... (its better off for the bank to have less shares)

mark7996 (November 30, 1999 at 12:00 am)

exactly, and this is whats happening in real life right now...doesn't make sense. they are technically buying way above market value...because co's can't sell it privately.

hotdroper (November 30, 1999 at 12:00 am)

Why would the SWF pay more then market value? That doesn't make sense in this example.

kleineajw (November 30, 1999 at 12:00 am)

You rock! I am a teacher & I really enjoy your delivery style. Keep up the great work!!

o0stonedagain0o (November 30, 1999 at 12:00 am)

THE FED!!This video has the FIRST mention of the FEDERAL RESERVE in the series.THE 'FED' is the real 'crucks' of the PROBLEM!END the FED NOV 22ndendthefed(dot)us

leetcr (November 30, 1999 at 12:00 am)

Wow. That last part was very interesting. So a foreign investor could buy the majority stock of a failing company. And instantly see an increase in stock price despite the fact that tons of new stock have been created. I think I can see now why all of these businesses have been gobbling each other up the last couple years. It still seems counter-intuitive though