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Yellen's Stagnation View: A Real Possibility?

QUOTE: "2) The banks will report good numbers because they talk to Geithner EVERY DAY about how they are doing. He is protecting the $1 trillion we have given to banks and financial institutions and for his own sake, must know how the banks are faring. If they were in trouble, we would know about it already because nobody likes surprises."

Of course the banks will report good numbers. Again the govt allows the banks to value their own toxic waste. Mark to market is gone. Naturally reports will look good. But it doesn't mean there is anything except continued deception.

In Defense of the Paulson Plan

CDO / derivatives total 500 - 1000 TRILLION dollars. If the govt only purchased 2% of the junk that would still cost the US 10 -20 trillion (yes trillion) dollars. That isn't possible. Maybe I'm missing something.