Steve Syre

" Everything's going great. Little bit of bad news old word we're down. Don't know lots and big in my head out the window right now I magic. And I'm not going to tell you can -- it. Storm for Federer and soul Romano gym -- that -- into the whole column program and I am just -- I didn't tell you appreciate the time you've given us veterans for them."

" 6 am sorry hill it's Tuesday called again -- we're trying to go around him now -- we have love seeing you fly over that basketball I bet ABC this video of the college basketball player who sticks of all. And he hangs out of the rim too long and ends up doing. Three series -- he literally -- two dozen are sixty and falls perfectly. Onto his side. He doesn't land on his feet -- he does I mean he totally does circle all might artist Sosa doesn't even have the body control of a gymnast I thought he would -- controls very good I think there was no way to get his feet to land honesty our character you know it's like he hangs on moves gradually to the horizontal sure and then let's go. But was able to complete the circle as he came down to zero haircut and artsy heat shouldn't maybe thank you view his library that I have."

" But but but I'm not -- well."

" Good enough hey you know what we love every day at this time we do the Boston visit to record always love talking to Boston -- we love -- talking about business this was also with this financial craziness going -- in today's edition of the Boston business report with the globe Steve's site is being brought to you by SP ally savings bank life insurance is. No no nonsense life insurance company hasty side we have got a plan and it's got some details of the market boats to. You've got to give us the story behind the story."

" But you know and you got the idea of a one on one basketball game between prominent spot -- We do have a plan actually we had a plan -- forward no details said that didn't fly at all that the that was one of -- really negative earning points for Tim Geithner in the market. Now a lot of that back then that's it seems like ages ago only a few weeks."

" It is there any relationship between what Geithner outlined. Several weeks ago and in what was were released yesterday is the actual proposal."

" I don't know I think there there are pretty consistent but you know the problem was that people were actually expecting a specific plan -- and and got. Nothing but the broadest -- strong and."

" That's why the market's been in the stupor partial."

" Right right and you know obviously the market was booming yesterday as a result. This news and and there are actual because not all the details but a lot of them and it that was applause and also there was you know it -- clearly what they plan net. Do seem to be good enough to incite a lot of interest among buyers private buyers. To get involved with the government buying. Hopefully toxic assets which we now call legacy yeah."

" Yeah -- legacy -- like that it sounds much -- I genteel that's yeah that's right I -- 50% -- my legacy assets as opposed -- I got slotted in by toxic -- and -- I have no more legacy that's a substance -- I got -- you know the -- real -- colleague in the globe writes about you know the outlines here and out what I -- from her -- the whole. Talk Steve is that this seemed to be a lot of private. Capital people who were expressing an interest indicating. The desire. Determination to participate in my overstating it ours to spend so far at least reasonably well received by the private money people."

" I think it has been privately. Received well by private people -- you have very. Dig. Institutional investors like and call. Like black rock that are very big in. Text in com investment. They're not. Does stock names like fidelity but they're huge -- that part of the investment world that. Are expressing. A very keen interest in participating. And that's that's all for the good and the reason that there contrast it is that there is -- structure in which. They get to choose the prices ultimately. That they're going to participate or not. We have and that the government ultimately is going to be able to it is going to finance a lot of this transaction it's. It's you know when you're if you're talking about a couple of assets that say yup and -- Goes out and says all right you know I'm gonna. Pay -- hundred billion dollars of this and maybe the face value what it was a 130 million or something like that storm by its discount well. It's the way it works is that the FDIC. Has lots of money to lend you to help you to help make this transaction work and maybe 8085%. So what you're left with is the -- the last 15%. In which the treasury jumped in and become your partner. And you know ultimately if there's a value of these as security goes up in the private investors make a profit the treasury makes support share that profits. And if the stock if the security -- ultimately these private investors can lose their money but the good news for them is that. Bill alone on the other hand there's no record sound that's so big you know if the value of because down some they can in fact. Well it was all the money they've invested but they're not involved did he get if it really goes in the tank unit -- you know some of the value that had been loaned to them goes down."

" So there's a -- and that's a great limitation -- on in their exposure and a lot of possible upside."

" Yes yes and which is why we should eventually gives. Leverage which is one of the things that got us in trouble in the first place. To these transactions which makes. The ability to make -- very. Good profit on it quite possible."

" Does that mean we should be nervous -- the stock market went up five earned her points in a gleeful day I assume that's because we gave them too much."

" I I think the stock market went up because they're detonated everybody's desperate to see a plan go forward net and what the reason that -- down the last time around on this is that. They were expecting to -- forward progress in in in reality based on nothing that kind of move the process ahead I think. What what happened yesterday with the start is that they saw something where actual progress could."

" When he simply because. Obama administration is showing some life it it doesn't have to do with the contents of the plan just sit there -- alive and that Geithner was able to draft something and send it over."

" I think they got something that clearly the market was willing to participate and it could actually work as opposed to drawing up plans for the sake of a plan. I think that's mostly what. The market responded -- presently not as convinced that it's going to be very successful in the end but but it it they're it is some element moving forward."

" Well to that point to -- not being totally convinced will be successful yesterday we talked about the shifting economy were Louis and it appears we're going through something fairly profound. What they'll less driven by consumer spending so and so forth. So if this plan works at least in its initial stage lots of banks clear their balance sheets of crappy crappy loans. In return they get some money that they could lend out. Is this anything going on out the in the real world economy as opposed to the toxic asset economy in the real world economy on which will be asked to make. Loans are people going to stop buying because of people got must not. Opening restaurants appeal all all the different things that make an act of -- of a good economy."

" Now optional although things are are are are certainly. In a bad position right now we talked about kind of yesterday though the longer turn. That term as strain on what used to be. Consumer economy. And but they're still a big economy and that big economy needs finance as just. A normal come. For the economy that he even if it's. You know terrible 85 or 90% of it still work it. You know if you go down -- and a 15%. Yes that's that feels awful but there's still a huge majority of the economy that continues to work it has. To have financing system as a normal everyday part of how -- of how business works and and hopefully they'll be able to participate -- that yes."

" I'd say you're optimistic pessimistic of a sudden a great on this I don't."

" They are and kind of C minus on this site at my biggest problem is I I think you've got a plan where you've convinced. The buyers and and in these transactions to get rid of that toxic assets involved. I am just not convinced that the sellers are are motivated at this point and that he just you know this is where. Anytime is a big credit bubble and you have to push all that junk. -- into the corner and in just you know take your medicine in in Egypt. That banks are reluctant to do that because they're always hopeful that things will come back and everything will be better and I haven't seen anything yet that convinces. The holders of these things right now that it's time to you hit and move -- that you have a buyer -- to them. And get rid of -- and -- you need a virus self created transaction. We didn't we've reduced fire and actually produce the seller."

" I'm amazed he you know -- conjecture that the banks might be reluctant I would've thought. That they look at this pilot crap that's it then they have office each and every day. Desperate to unload it. And debt and no other likely market far it's Steve at least over a few years if not several. Pick comes oh here comes some group of bias -- public private the -- the hodgepodge. And maybe that going to get let me let you know ballot maybe you're gonna get 25 cents on the dollar thirty cents on the dollar. I would I think if I think if I was a bank I would live pet that. Yeah."

" A banker -- looks as if they are right. It just to think that it is loans and -- securities backed by loans and and they're different a couple of ways in the most important way in this context is the securities have to be. But reevaluated. Financially. Based on what the market is. All the time is called mark to market you have to you have to put a value want it based on. What it would be tried to sell -- right now obviously that. That prices -- extremely depressed and they say well are right I've got it on my balance sheet right now very depraved practice depressed prices. And you know -- right now. I've actually realize that lost and I'm locked into that lost forever if I hold onto it it looks bad right now but. Maybe it'll you know appreciate and come back to normal later on and I can recall some of that money to -- And selling -- the tempo in the government and their gonna make the money by holding onto it why don't I just hold on to make that money. And that -- you know I think that's a very realistic point of view but I think it's a very common point of view banks."

" She's -- appreciated as always -- GM some."