Timmy Needs to Find Another PPIMP
Pulling out prematurely is never a good idea.
The Treasury Department said Wednesday that the decision by TCW Group Inc. to pull out of the government program to buy toxic bank assets will leave taxpayers holding $356.3 million in investments pending sale of those holdings to other investors.
TCW Group Inc. announced on Monday that its UST/TCW Senior Mortgage Securities Fund partnership, with roughly $500 million in assets under management, had decided to withdraw from the Public-Private Investment Program, known as PPIP.
The Los Angeles-based money manager said it would liquidate the program and distribute the money back to the fund's investors. The action came after TCW fired its chief investment officer, Jeffrey Gundlach, who was to be a manager of the fund.
The Treasury had 100 applicants to pick from and of course it picks the company that ends up having some seriously dysfunctional shit going down.
In the meantime, here is a useful definition for those of you that are scratching your heads wondering where the hell the Treasury comes up with this stuff:
Musical chairs is a game played by a group of people (usually children), often in an informal setting purely for entertainment such as a birthday party. The game starts with any number of players and a number of chairs one fewer than the number of players; the chairs are arranged in a circle (or other closed figure if space is constrained; a double line is sometimes used) facing outward, with the people standing in a circle just outside of that. A non-playing individual plays recorded music or a musical instrument. While the music is playing, the players in the circle walk in unison around the chairs. When the music controller suddenly shuts off the music, everyone must race to sit down in one of the chairs. The player who is left without a chair is eliminated from the game, and one chair is also removed to ensure that there will always be one fewer chair than there are players. The music resumes and the cycle repeats until there is only one player left in the game, who is the winner.
Wait, define "winner"? I thought we were talking greatest fool here, did I confuse the game again?
And while we're on the subject, can someone tell me why we aren't really talking about PPIP? That is a serious question, I would really like to know. This is what the auditors might call "material" and I would really hate to see us too, oh, distracted by things like health care and the pending implosion of the dollar to notice.
In totally related news, LOLFed still pwns for most hilarious PPIP pic in history.