What Do You Think of Geithner's Public Private Partnership Investment Program?
Yesterday, Treasury Secretary Timothy Geithner unveiled his plan to clean up the toxic assets plaguing the financial industry, calling it the Public Private Partnership Investment Program. Here's how one economist explained the plan: "The Geithner Plan is a trillion-dollar operation by which the U.S. acts as the world's largest hedge fund investor, committing its money to funds to buy up risky and distressed but probably fundamentally undervalued assets and, as patient capital, holding them either until maturity or until markets recover so that risk discounts are normal and it can sell them off—in either case at an immense profit." What do you think of the plan? Is it the government's role to commit taxpayer dollars to buying up toxic assets? Post your thoughts.
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Reader Comments
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Just a mirror
Lets see what is going to be the president reaction about this kind of decisions. This is just one of the situation that exemplifies the crisis moment we are facing now.
Geithner Plan
The plan appears to be the best solution to an otherwise intractable problem. If you think that the private sector will make too much money on the deal then find a way to invest in it yourself. If you think the assets are too toxic to touch, then don't bid, or bid low.
This is the way business works.
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