Monday, June 08, 2009

Geithner's attempt to buy toxic assets failed

First, recall back to March when wonderboy Tim Geithner was hailed as The Man to save the world from the end of civilization as we know it!.

Now, fast forward to June. Over at the HuffPo, Robert Kuttner is reporting that Geithner's plan to subsidize 94% of the banking industry's worthless assets has crumbled:

Last Wednesday, the FDIC quietly folded a program that was the centerpiece of Treasury Secretary Tim Geithner's effort to get toxic assets off the books of banks.

The program, whose details were unveiled in late March after six awkward weeks of delay while the administration worked out the details, included special incentives for what Geithner delicately termed "legacy assets." These are the junk securities on banks' balance sheets, mostly backed by sub-prime loans, for which ordinary buyers cannot be found.

I said it then and I say it now... just say NO to Geithner's schemes!

Tim White

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