Thursday, May 07, 2009

Everybody Gets an "A"!


Tim Geitner tells us that no banks are insolvent, and the banking system is well on the way to recovery.

Needless to say, this means we taxpayers must pour in additional hundreds of billions of dollars, and we must continue with Geithner's plan to buy up toxic "legacy" assets, even though those assets are now fairly valued and the banks remain "in the black".
We are continuing to execute our programs to relieve the burden of legacy assets, help small businesses and community banks, and tackle the mortgage and foreclosure crisis.
And, as you know, there's no better way to "help small businesses and community banks" than to hand tens... perhaps hundreds of billions of dollars to huge institutions like Bank of America and Citibank.

Update: What Geithner should have said:
“You’re going to hear criticism from both sides in this,” Geithner said. “A lot of people will say these were unfairly tough. … And there will be other people to say … that losses could be worse. But our stress tests were designed to rule out that possibility, and we're confident in the results of our tests.”
What Geithner said:
“You’re going to hear criticism from both sides in this,” Geithner said. “A lot of people will say these were unfairly tough. … And there will be other people to say … that losses could be worse. And they may be right.

No comments:

Post a Comment