I am beginning to think, actually for the last few weeks that Summers and Geithner are going to help bring Obama down. Something has to give!!
Geithner’s Last Stand
…………The indignation over AIG will serve a useful purpose if it focuses public attention on the much larger issue — the failure of the entire approach that Treasury Secretary Tim Geithner and White House economic czar Larry Summers are using to rescue the banking system.
It would be hard to find two administrations more different than Bush and Obama. Yet, when it comes to bailing out financial firms, Geithner’s approach is a seamless continuation of his predecessor, Hank Paulson’s. It makes you wonder who is the permanent government. Perhaps Wall Street?
Even the players are the same Goldman-Citigroup crowd. The well named Neel Kashkari, the Citigroup executive brought in by Paulson to run the TARP program, is still in place. Geithner’s top assistant, Mark Patterson, is from Goldman. And most of the concepts are coming from the same Wall Street crew. LINK
Two weeks ago, I posted an article showing how the Geithner-Summers banking plan could potentially and unnecessarily transfer hundreds of billions of dollars of wealth from taxpayers to banks. The same basic arithmetic was later described by Joseph Stiglitz in the New York Times (April 1) and by Peyton Young in the Financial Times (April 1). In fact, the situation is even potentially more disastrous than we wrote. Insiders can easily game the system created by Geithner and Summers to cost up to a trillion dollars or more to the taxpayers. Read more at LINK
AllentownJake says; I order these in importance to me from least to most with 1 being the least important and 5 being the most important.
1) What do the democrats get out of this plan? As part of getting this plan has a deal been struck with the other side to support it? As a party are we taking all the risk? We all know a few calls from these banks to their republican friends could provide enough cross party support to make this plan widely supported.
2) So what are we going to do about the rest of the economy. Throwing a trillion dollars into the banks? What does this do for Detroit and other businesses that actually make things instead of manufacture paper and computer entries.
3) What concessions have we gotten concerning other issues. Are these banks going to suddenly be more friendly or at the least be less vocal about their oppositions to unions and other progressive causes? Do we get the EFCA out of the deal and less opposition to regulation? Or are they going to use their coffers to finance campaigns against the very things we hold most dear. Our we essentially financing our opposition. We got no concessions on executive pay out of this or anything else I can see. It just looks like a giant gift to the enemies of the causes I believe in.
4) What kind of precedent does this send to the people that orchestrated this mess? Seriously they have just essentially robbed the American people and the institutions they were entrusted and not only are the going to get away with it, in a lot of ways they are going to be rewarded for that behavior. Rewarding bad behavior is not good for society.
5) We only get one shot at this. If this fails, we don’t have the resources to get a do over. If this succeeds in the short term but only allows the bad guys to do the same thing again 2-3 years later what have we really gained? I didn’t vote and volunteer to have a Bill Clinton. I voted and volunteered for an FDR. I want reform not a temporary uptick in the economy till the bad guys find a new way to rob us blind again. LINK