dinsdag 14 april 2009

Het Neoliberale Geloof 420


Geithner Bank Plan Faces New Wave Of Criticism


Two weeks after being introduced, Timothy Geithner's bank rescue plan is

facing a new round of withering criticism from economists who say the

proposal is likely to produce major losses for taxpayers as banks and

investors game the system.


In public writings and interviews with the Huffington Post, some of the

same figures that issued early warnings about the current financial crisis

now say that Geithner's designs for alleviating toxic assets from the

nation's banks are inherently flawed. As evidence, they point to the

massive amount of federal funding, in the form of FDIC backing, being

offered to prospective buyers of toxic assets. It is the "closest thing to

risk-free investing -- with leverage! -- around," wrote Andrew Ross-Sorkin

of the New York Times.


More specifically, they have highlighted the seeming ease with which a bank

could effectively drive up the price on an asset it already owns by

creating subsidiary entities to bid on those assets. "The amount of

potential rip-off in the Geithner-Summers plan is unconscionably large,"

said Columbia University's Jeffrey Sachs.

Lees verder: http://www.huffingtonpost.com/2009/04/08/geithner-bank-plan-faces_n_184122.html



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