I think Geithner was a horrible choice. The balloon has popped and he’s still trying to convince us that he can sell the helium.

But I must admit, calling me a Koolaid Drinker and lumping me in with a bunch of nonexistent straw men makes your points perfectly.

What did you expect? Obama is exactly who we knew him to be. Cautious to a fault, working with his opponents to reach consensus, etc.

The fact that Obama has made Republicans look silly every step of the way so far, in my mind, earns him some respect and some time. Yet, for me to point out his effectiveness so far as a leader and calling for, again, some perspective, makes me some kind of simpleton follower.

Please give me one good reason why that sentence can’t read:

“One realizes [Geithner] has enough Wall Street insiders working with him that they’re probably going to pay as small a price as possible for their follies.”

Example: a CitiBank hedge fund bids high deliberately to enrich the Citi holding company. When the over-bid garbage tanks, the Citi Hedge Fund walks away and leaves the taxpayer to carry the loss.

Is my understanding correct?

That’s why the private equity firms have to put up something, to have skin in the game, which will encourage them to price wisely and not lose their own skin.

Whether Geithner’s percentages are right (or close) is fully up to debate and we’ll see whether it works. One presumes he has enough bright economists working with him that he’s probably got it as right as it’s going to be.

As I see it, the banks will offer to sell crap assets.
Who’s going to spend even a nickel for such crap?
Stupid plan, if you ask me.

Many plans are considered. Few are chosen. None are great. Yours is likely as bad.

Arthur Jensen: One vast and ecumenical holding company, for whom all men will work to serve a common profit, in which all men will hold a share of stock. All necessities provided, all anxieties tranquilized, all boredom amused. And I have chosen you, Mr. Beale, to preach this evangel.
Howard Beale: Why me?
Arthur Jensen: Because you’re on television, dummy. Sixty million people watch you every night of the week, Monday through Friday.

Seriously, does any-fucking-body really understand any of this shit? (not the post the whole she-bang)

housing bubble burst —>
mortgages worth much less —>
banks using mortgages or mortgage-backed securities have uncertain reserves —>
banks can’t lend to one another for fear the other won’t repay —>
Geithner helps remove uncertain value assets (toxic assets) from banks —>
private firms can hold uncertain value assets to long-term —>
banks now have more capital (from sale of toxics) and can loan again —>

IF IF the private firms will buy and the banks will sell them.

If it doesn’t happen Geithner has to use other means to get the toxic assets out of banks.

a huge number of bats, doing what bats do when hanging from the ceiling, had created an enormous pile of guano, which in turn had become the habitat for an even larger number of creatures. And it dawned on me that this – a big shitpile, created by those who could not see it, and serving as the environment of a massive group of cockroaches – is nature providing a perfect illustration of the economic crisis.

The image, oh the image: I wouldn’t touch that with a ten-foot pole.