Obama vs. Geithner – Stimulus vs. TARP II
by Tom on February 11, 2009
in Market Musings, banks
Daniel Gross has an interesting article outlining the difference between Obama’s view on the Stimulus package and Geithner’s view of TARP II. Not pretty reading, but I think it’s necessary……
Excerpts below….
From the rhetoric surrounding the stimulus bill, you’d think the American economy is already stabilized, able to breathe on its own, and ready to get up and start walkingThe patient he diagnosed is nowhere near ready for ambulatory care or physical therapy. Rather, it’s struggling to breathe without life support. Worse, it is still in danger of infecting the whole hospital. For Geithner, the plan is more about stabilization and triage rather than recovery. The takeaway: The financial sector is still in meltdown. The best we can hope for is that these hundreds of billions of dollars in new spending and support will help stabilize things. Obama’s rhetoric about recovery may be reassuring, but, at this point, Geithner’s pessimism is more credible.
