It's awful. Heads I win, tails you lose for the hedge fund/private equity guys. Squat for the public.
And Summers just said that he can't wait to get the public sector out of the markets. These guys are living in the past.
.....
Living in the past.
That neatly sums it up.
As you, and other informed observers have noted (from a variety of political persuasions, it should be remembered) the administration's approach is to assume that finance capital, as configured, remains as solid as a mountain range.
What's lacking, Team Obama insists, is 'confidence' that magic elixir which invigorates credit and commerce.
And they're right; everyone lacks confidence. High flyers in derivatives and private equity have close to zero confidence in the valuation of their instruments, securities and all the rest of it. Ordinary working people (the 99 percent of Americans who don't receive bonuses large enough to fund the purchase of an Airbus A380 -- or any bonus at all) have lost confidence in the value of their houses, the longevity of their employment, their ability to service debt and their future prospects.
And on and on it goes.
So yes Team Obama, I will concede at least one point: confidence is indeed lacking and confidence is needed. Two points; I'll concede two points.
But what happens if confidence is restored? What happens if the perpetually forlorn looking Mr. Geithner's plan accomplishes its goal of restoring confidence in the capital markets, the credit system, etc.
Short term, crisis averted I suppose. But long term (which might not take so long to come around next time) another massive fire to put out.
You know how every year or so there are spectacular wildfires in California and, every year, someone (usually a naturalist) says that the problem isn't always the fire but the fact we insist on building homes close to naturally fire prone areas?
To me, Team Obama's recovery plan looks a lot like a wildfire zone building project. Sure, there's risk, but the (repeatedly repaired and rebuilt) house is so lovely and offers such a pretty view while it lasts!
Really though, I don't think we can expect too much more from our new Washingtonians (many of whom are not so new). To take the necessary steps, to be as ruthless as required would mean accepting that the model of capitalism pursued since the 1970s is as phony as the phone number Heather gave you at that party and as crazy as a soup sandwich.
.d.