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Reply #60: I know the merits of the plan [View All]

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Oregone Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Mar-24-09 08:28 PM
Response to Reply #57
60. I know the merits of the plan
Edited on Tue Mar-24-09 08:30 PM by Oregone
It will unload the toxic bank assets, cause profit for investors with minimal risk, all at a cost to the government. Then we turn around and cross our fingers and hope, against all reason, that the investors and banks are happy enough to put their money down in the middle of the shittiest business environment this country has seen in years.

Id rather see the government perform a cheap, but legitimate hostile take-over of the banks (which the banks have done before to others), and a sell off of the assets to clean them out for public consumption. Once done, the government could take the profits from overall operation and ENSURE it is applied to fostering a more positive business environment in America, from the bottom up. Thereafter, the salivating investors will jump in the circle with open arms.

The merit of Geithner/Obama's plan essentially relies on Friedmanism and coddles the investor class to restart our economy. They assume if they shovel enough out to the upper classes, they will trickle it down. Will it work? Who knows. It may make entities more willing to lend (because they are solvent and can) ONLY IF it is profitable to do so. But this plan, in itself, doesn't ensure it will be profitable to invest in America, nor is it the only way to clean out the banks assets. In fact, it is a more expensive way to do it, and that expense is justified as a bribe to make investors do their free-market, trickle down magic.

The entire philosophy needed to merely come up with Obama's plan is so off track from where we should be, its beyond disappointing. Thats why its shitty. Yes, it will succeed 100% in getting the banks solvent. But beyond that, there is no guarantee it will do much else but cost the government some amount of money.
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