[lbo-talk] Geithner Plan Mark II

John Gulick john_gulick at hotmail.com
Mon Mar 23 07:01:36 PDT 2009


No comments on Geithner Plan Mark II? Golly, this list used to have a political economy slant to it. I guess most fled to the blogz quite some time ago.

Well, unsurprisingly GP Mark II is a more fleshed out version of GP Mark I, yeah? The S.O.S.

What I find more or equally disturbing than the public subsidy for institutional investors to buy up

toxic debt is there is no hint of an effort to rein in leveraged leveraged and the generation of

superprofits via selling, reselling, and selling again (i.e. churning) collateralized securities and other

financial instruments. All the "reform" (such as it is) is focused on executive bonuses and compensation.

It's cheap and easy pseudo-populism.

It seems the hope is to muddle through and lay the groundwork for another bubble in a few years.

Happy times will be here again!

It's bedtime here in Korea.

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