Galbraith Against Geithner Plan-Bloats Finance Sector & Won't Increase Lending

[terisan]

Galbraith seems extremely troubled by the Obama administrations plan. Sees massive losses for we the people as likely outcome, no likely increase in lending in US, and greatly enlarged finance sector at a time when it is already to big and must shrink.

Sometimes I wonder if Obama has been promised 8 years in exchange for doing the bidding of Wall Street. Cynical, yes. but Krugman and Galbraith both seem deeply troubled.


Video interview at Yahoo


Sorry having trouble linking at Yahoo Finance.

[amborin]

1. and---why is the FDIC assuming so much risk?

what about all the banking and legal fees that banks & lawyers will be raking in?

this plan uses taxpayer money to try to put a floor under worthless assets

will buyers of these worthless assets just get a piece of paper? will they just be purchasing part of the securitized loans? or, will they actually get the loan collateral?

who will hold the collateral?


will the bad guys be allowed to buy their own worthless assets?

or each other's worthless assets?

[terisan]

2. apparently the bad guys will be able to bid up each others bad loans at our expense. nt

[PM Martin]

3. Geither is the servant of Wall Street!