Rafael Grillo

Geithner's Vague Plan

How to fix an insolvent bank system? Everyone is looking at the Government to quickly solve a problem created by the populist policies of the past administration and the irreponsibility of the private sector. I wouldn't want to be in Geithner's shoes. It is a horribly complex problem. There are not silver bullets. What I find outrageous is the passivity of the the business leaders in stepping up and proposing alternative solutions that go beyond extending the hand and asking for money. I'd like to see the Lewises, Dimons and rest of financial geniuses getting together and explaining how they will work together to get out of the mess they got us in. I am afraid the economic malaise will just have to follow its course, and it will take years. In good economic theory, Government spend and heavy investment is the way out of a recession/depression, but that takes time. The economy will have to re-set at lower levels of living standards and the tax burden will be felt for years. Greenspan's easy money and Bush's tax cuts and deep deficits propelled this fantasy bubble that just burst. Part of the solution will be higher interest rates and higher tax rates. It is unavoidable. We should be grateful if we can avert a depression.