Wednesday, February 11, 2009

Geithner Drops an O-bomb

Tim Geithner shared his plan for rescuing the banking system. However, the plan he described was not a plan. Maybe it was an outline, and maybe it contained a few worthwhile ideas, but it was not a plan.

He's Obama's man at the Treasury. He's a big force in the new O-conomy. When he carries out Obama's wishes, he drops O-bombs on the O-conomy. This first one may be devastating.

Obama repeatedly hammered the concept of giving federal Stimulus money to "shovel-ready" projects. Obama told reporters Monday night that Geithner would deliver a plan that was ready to operate -- a "shovel-ready" plan, if Obama were to speak in consistent terms.

Instead, Geithner showed his timidity and his inability to tackle the chief issue forming the core of the banking recovery -- valuing the bad assets.

Geithner was petrified at the thought of the government "overpaying" for assets. He said it would take more time to develop a pricing model. After further comments, it was obvious he had no idea how to build his pricing model. He said he wanted input from everyone. Not good.

Obama has repeatedly insisted that acting now and acting fast is the only way to save the economy from catastrophe. But Geithner has shown that the people in the administration who must devise the plans are not capable, and perhaps not willing -- and rightly so -- to spit out a plan in the first weeks after the new administration has taken charge of the government.

It appears Obama is yelling most loudly at Geithner. But not directly. Obama is appearing in cities that have had more than their fair share of financial problems in the last couple of years. He's exhorting everyone to act fast to save our collective neck.

But Geithner offered some vague talk about a government/private partnership to acquire bad assets. After some reflection, it seems this plan is nothing more than a plan of creeping nationalization of the banks.

Meanwhile, the Stimulus Bill was passed. That seems to mean we have committed ourselves to spending $790 billion on a hodge-podge of projects and some tax cuts. The list of projects seem to include funding for every pet project of every politician. But it adds up to a vast expansion of government control over many industries.

Then there is Obama's messianic character. He has begun speaking as though he is delivering sermons from the mountaintop. We are in trouble.

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Anonymous Anonymous said...

What did he do, fart?

1:50 PM  

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