The “Geithner Put”

[Crewleader]

It's Time to Break up the Big Banks

by Mike Whitney / February 26th, 2009

Timothy Geithner is putting the finishing touches on a plan that will dump $1 trillion of toxic assets onto the US taxpayer. The plan, which goes by the opaque moniker the “Public-Private Investment Fund” (PPIF), is designed to provide lavish incentives to hedge funds and private equity firms to purchase bad assets from failing banks. It is a sweetheart deal that provides government financing and guarantees for illiquid mortgage-backed junk for which there is no active market. As one might expect, the charismatic President Obama has been called in to generate public support for this latest addition to the TARP bailout. In this week’s address to Congress he said:

“This administration is moving swiftly and aggressively to restore confidence, and re-start lending.

We will do so in several ways. First, we are creating a new lending fund that represents the largest effort ever to help provide auto loans, college loans, and small business loans to the consumers and entrepreneurs who keep this economy running.”

http://www.dissidentvoice.org/2009/02/the-%E2%80%9Cgeithner-put%E2%80%9D/

[leftofthedial]

1. geithner is unquestionably Obama's worst cabinet pick.

he is doing exactly the wrong things.

he is a slightly less noxious version of Paulson.