Despair Over Obamas Financial Policy

post from Daring Fireball on 21 March 2009 03:04:00 PM. © Daring Fireball

Paul Krugman does not like Geithner plan:

In effect, Treasury will be creating — deliberately! — the functional equivalent of Texas S&Ls in the 1980s: financial operations with very little capital but lots of government-guaranteed liabilities. For the private investors, this is an open invitation to play heads I win, tails the taxpayers lose. So sure, these investors will be ready to pay high prices for toxic waste. After all, the stuff might be worth something; and if it isn?t, that?s someone else?s problem.

As Krugman wrote yesterday: “This administration, elected on the promise of change, has already managed, in an astonishingly short time, to create the impression that it?s owned by the wheeler-dealers.”

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Read The Full Article:
http://krugman.blogs.nytimes.com/2009/03/21/despair-over-financial-policy/