jepittman

U.S. Rejects Nationalization of Citi and BAC

This administration has a viable plan for dealing with this crisis. It has done an absolutely wretched job of selling it. There is a plan to get the 'bad assets' off the banks balance sheets. There is a plan to recapitalize the deserving banks with cash. There is a plan to restart securitization of commercial loans, residential mortgage loans, student loans, credit card consumer loans, with the federal reserve as the purchaser until private markets stabilize. These plans were vaguely outlined and then the spokesmen disappeared with no Q&A, no followup with details, and virtual silence while rumors of bank nationalization ran wild. Obama is a thoughtful and talented man but it appeares like he has no clue about how markets work, and the advice he is getting about communication with them leaves a lot to be desired.