Do We Even Need the Geithner Bank Rescue Plan?

Back to blog

Geithner plan is a huge wealth transfer

The markets do not like the Geithner plan because it is good for the economy. The markets like the plan because it is a wealth transfer from the taxpayer (meaning our children) to investors who hold equity and debt in troubled banks. This increases the value of the securities involved whether investors like the plan or not.

I for one prefer to take the haircut myself rather than bequeathing the haircut to my children.

Charles R. Williams of OH @ Mar 26, 2009 15:57:56 PM

aarc

It will be better if the Geithner Plan doesn't work at all. At least the government will still have some ammo left for future problems.

Companies other than financials are hurting bad right now. They are burning through their cash reserves with insufficient or negative cash flows. Sooner, rather than later, big companies, other than financials, will start going bankcrupt. That is going to be the next stimulus for a sustained market meltdown.

The government is basically without a credible leader right now. They don't even have a Comprehensive Plan that addresses the whole global marketplace deteriorating at the fastest clip ever experienced by mankind.

No comprehensive plan that addresses all sectors of the economy and the mounting unemployment. No comprehensive plan that will lure back the much needed new investments required by the economy in order to arrest further layoffs and create new jobs.

No Comprehensive Plan = No Leadership = No New Investments = No New Jobs = No Economic Recovery.

Government is still dis-organized and are still trying to put out simmering previous fires of mortgages and credit crises while more fires are breaking out and much bigger fires are threatening to break out sooner rather than later.

aarc @ Mar 26, 2009 07:20:36 AM

We need government out of the way

Let the free market work itself out and it will.

Every time in history that government has gotten involved it either makes things worse or it delays the correction.

BTW, I listened to President Obama "press conference" last night and I have a question, why do responsible homeowners need the government’s help? If they are responsible they bought a home they could afford, they pay they bills, and they have kept their jobs. I am confused.

Larry of CA @ Mar 25, 2009 10:08:11 AM

Back to blog

Add Your Thoughts
About You
Capital Commerce

Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

advertisement

advertisement

Subscribe

U.S. News Digital Weekly

A weekly insider's guide to politics and policy — in a multimedia, digital format. 52 issues for $19.95!

U.S. News & World Report

6 months of U.S. News & World Report's print edition for only $15. Save up to 67% off the cover price!