We don't have an adult as Secretary of the Treasury, we have a punk who thinks we live in a wingnut radio world. I've heard that Geithner may be doing this as a last attempt before nationalization but that seems too charitable an interpretation.
Geithner Relies on Investors for $1 Trillion Plan (Update6)
By Rebecca Christie and Robert Schmidt
March 23 (Bloomberg) -- The Obama administration unveiled its plan to remove toxic assets from the books of the nation’s banks, betting that it can revive the U.S. financial system without resorting to outright nationalization.
Sweden adopted the temporary nationalization approach in the 1990s. Krugman said in a New York Times opinion piece today that Geithner’s strategy won’t work because it “assumes that banks are fundamentally sound and that bankers know what they’re doing.”
Geithner said that his plan was the best of a limited number of options, including leaving the illiquid assets on banks’ balance sheets or having the government itself buy them all, shouldering all the risk.
“We are the United States of America, we are not Sweden,” the Treasury chief said. Summers said that he was “surprised” at Krugman’s article.
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