Search
 

Growl of a Paper Tiger

Maybe you could say that PPIP lost its pop. Or maybe it was just late to the table. Maybe its inception was simply paved with good intentions. May be.…

By Ryan Clark - Managing Editor of GlobeSt.com. | Updated on December 09, 2011

Maybe you could say that PPIP lost its pop. Or maybe it was just late to the table. Maybe its inception was simply paved with good intentions. May be. The fact is that the government’s Public Private Investment Program after a year of mystery, outrage and conjecture, and two quarters of activity, has utilized only about 5% of its projected purchasing power. It seems that the proposed toxic asset savior, when push came to shove, garnered little faith among the commercial real estate community and in the process became a shell of its once Olympian ambitions. Dial back to March 23, 2009 when the government announced PPIP. The market was fearful of the potential for toxic assets to hamstring banks’ balance sheets and strangle the loan market.

The proposal, at its core, was a mix of government-subsidized free market ideology and private capital, calling for a select few fund managers to facilitate price discovery through competitive acquisition of troubled debt. The prognostication from the Capitol was that the program would be able to raise $500 billion of purchasing power under the auspices of the public private partnerships and jump-start the skittish investment market.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.