Geithner's New TARP Plan - BARF
The Treasury Secretary has issued a new plan (small pdf) for TARP management.
Yglesias believes there is a window in this fact sheet for nationalization of the banks.
What is most amusing is Krugman is calling the plan a Rorschach test.
I heartily agree and wonder if a public relations, marketing master wrote up this plan for one can project what one wants to believe within the text.
But I have a funny feeling investors aren't too hip to projecting their beliefs into a nebulous bullet point page.
Since I am reading other major economists and economics bloggers write up different interpretations, my vote for the truth of this plan is Krugman. People are projecting whatever they want to believe into this document.
Read it and tell me if you have that sinking feeling or do you receive concrete definitive execution steps? Sinking in concrete maybe?
What I get out of it is homeowners are still royally screwed with only $50 billion going to them and some nebulous rephrasing of the Hopeless Hope Program.
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Taxpayers assume too much downside risk in this machination. You are right about homeowner relief. It almost seems like an afterthought.
This is more than a liquidity crisis. This idea that if we buy up CDOs or loans will unfreeze the credit markets is so old - this may have worked months ago but not now.
'Nationalization' leading to liquidation of insolvent banks would have been cheaper.
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