Notable and Quotable

Posted by Kendall Harmon

Here is the real plan that now seems odds on to succeed.

The Plan: Dump $500 billion of toxic assets on to unsuspecting taxpayers via a public-private partnership in which 93% of the losses are born by the taxpayer.

--Mish in his latest analysis of the Geithner "plan"

Filed under: * Economics, PoliticsEconomyThe 2009 Obama Administration Bank Bailout PlanThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--The U.S. GovernmentFederal ReserveTreasury Secretary Timothy Geithner

Posted March 30, 2009 at 1:23 pm [Printer Friendly] [Print w/ comments]

1. Jeffersonian wrote:

That pretty much encapsulates the plan, as I see it.  If banks were interested in getting true market value for these assets, they’d be selling them off right now.  What’s keeping that from happening is Geithner’s plan to overpay so he can recapitalize these same banks under the table.

Slightly edited by elf.

March 30, 2:27 pm | [comment link]
2. Dilbertnomore wrote:

Elections - General AND Primary - produce consequences. This prognosis is very likely, largely descriptive of the consequences visited on all the people of America by 53% of the 2008 Presidential/Congressional Election voters. Of course, when offered the opportunity to self-define ‘hope and change’ one tends to ‘blue sky’ the concept in personally comforting terms. I wonder how many are now experiencing buyers remorse. God have mercy on them and on all of us.

March 30, 10:16 pm | [comment link]
3. Shumanbean wrote:

I’m not very well versed in finances and economy, probably like most people, but I’m starting to get the picture. This stinks, and there doesn’t seem to be anything that can be done, except sit and watch it happen, or ignore it and not watch it happen. This plan seems to be a transfer of everyone’s wealth (those who pay taxes, at any rate) to the same people that caused this mess, with no hope at all of the real investors (taxpayers) receiving any return, but still taking almost all the risk. Am I missing something? Does our investment sometime return to us? If so, how? Tax credits? Government health care? How are we supposed to feel good about this?

March 31, 8:29 am | [comment link]
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