Paul Krugman on $1 Trillion Geithner Plan to Buy Toxic Bank Assets. Democracy Now 3/23/09 1 of 2

Treasury Secretary Timothy Geithner is preparing to unveil a plan today to purchase as much as $1 trillion in troubled mortgages and other assets from banks. The government is reaching out to hedge funds, private equity firms and sovereign wealth funds to help buy the toxic assets. The Obama administration has described the plan as a public-private partnership, but most of the actual money will be put up by the government. We speak with Nobel Prize-winning economist and New York Times columnist, Paul Krugman.
http://www.democracynow.org/2009/3/23/the_zombie_ideas_have_won_paul

Category:

News & Politics

Tags:

• Paul
• Krugman
• Democracy
• NOw
• Geithner
• Plan
• toxic
• assets

[GoOrange0711]

He was stating that premise as the basis for the "zombie policy," not asserting it as fact, or his opinion

[gunsandbullhorns]

If the market is "undervaluing" the toxic assets, then Krugman ought to start buying 'em, and encourage others to do so as well. Right?

I've got a good point, right?

[dave777blaster]

this is the end of America it is the prelude and excuse for the North American Union.

this the breaking of the people's purse.

it has happened dozens of times in other countries. designed to fail.the contrived take down of American hope.

[aikido7]

That's "helpless thinking" and lowbrow conspiracy fantasies on your point. What, specifically, can you offer up to help build and regulate a future model to give us a ground floor to begin working?  That's what Barack Hussein Obama is doing and that's why I support his efforts.

[aikido7]

When the so-called "normal lending" by banks ran rampant and de-regulated for decades, I am confused as to what you are REALLY saying here.

Money, by its very nature, needs a debt, credit and spend dynamic. As Keyens showed, we need to control that dynamic for the greatest good. This has happened many times with capitalism and has will happen many times again. That's what Karl Marx criticized in Das Kapital !!!!

[thermalfreek]

Timothy Geithner calls Henry Paulson to ask how to fix the problem, this is how it went,¨Start talkin to these stupid politicians in a economical language they won´t understand, make sure our buddies at wall street grease all of their pockets and then pass them a bill that you have changed all the wording in it hours before it goes up for a vote.¨ Geithner replys ¨REALLY¨, ¨yeah just start acting like the Bush Administration and you´ll get away with murder and pillage.

[cpdaman]

When Obama has exhausted shifting the debt from banks to taxpayers (and paying the banks much much higher than the private sector is willing to pay ...and much higher than they will be worth if held to maturity....perhaps you will realize it is a giveaway when banks still do not bring "lending back to normal"

since less borrowers are credit worthy

the securitization model of creating debt is what collapsed and it's dead and gone..w/ profits .. until they GAME Carbon credit derivative trade

[therealcaptobvious]

This is rediculous. After the first trillion spent didn't work, why are we spending another?

after $3.2 trillion spent including stimulus, bailouts and the omnibus earmark thing all we got today was a 500 point rally 6 months later. It's unbelievable.

[aikido7]

Geitner's plan is a good first step. FIRST STEP. It is not a bandaid. Politically, when Obama has exhausted all our other choices, THEN we can open debate about government takeover (limited and short-term) of the banks. Wall Street is risk averse so the assets are undervalued from the government and Main Street's view.

[schultzee4748]

Tim Geitner is simply redistributing wealth upward to this criminal buds.

I am sick of socialize the cost and privatize the wealth.