Kick the can down the road?
An interesting article about the administration’s plans for the banking world and how they aren’t sufficient. Keep this in mind when you read and hear all of the news reports about how the banking system is over the worst of it…..
Tom
This argues that the administration is in denial about the need to recapitalize the banking system….Further, it will take six months to get the program in motion. The stress test is simply a “smoke screen” designed to postpone the inevitable moment when the administration has to deal with the well known and severe problems in the banking system. …
In this context, it is puzzling why the administration is tinkering at the fringes with programs designed to enrich Wall Street. Geithner and Summers need to address the banking problems square-on.
Six months “to get the program in motion”? That detail is new to me, but if that’s the case, if they are kicking the can down the road that far, that’s far too long to wait. Six months?
Obama is playing stall ball to get through the 2010 elections. The census reset of congress makes 2012 electoral calculus problematic if the recession continues, so he will stall in hopes that he retains Congress for another 24 months in the meantime he and Geithner dismantle capitalism in favor of global goldmansachsism.