rmenton

Geithner's Vague Plan

The posts here are surprising. Heaps of criticism for Geithner, yet an underlying tone of "what is the government going to do about this." Frankly, I was relieved that they hadn't come up with "shock and awe." Rather, it seems to me like what has probably happened since the new administration has had to tackle this is to consult with experts around the business world, for their ideas. The vagueness of this plan no doubt reflects the care that is being taken to not jump into something that 1) may not be necessary, 2) if it involves taking on impaired assets, does not prejudice the position of holders that will likely not need assistance. I'm beginning to get the impression that many people "just want this thing to end," but are not either knowledgeable or patient enough to allow market forces to have their effect. Remember, asset values have declined substantially. Let's see if economics as we know it to be in the conventional sense will begin to emerge.