Define The Geithner Plan"Working"
Will it work? Isnít that the only thing that matters at this point?. . . I concluded, somewhat to my surprise, that it might well work. By this, I certainly donít mean that it will, all by itself, revive the economy. But I think it could put a real floor on the price of the bad assets ó critically important to stabilizing the banks ó and change the market psychology so that securitized assets can begin to trade again, which is important to get credit flowing. And it will give regulators a far sounder basis to ask Congress for more money to recapitalize banks ó or take them over, if it comes to that. . . .
(Emphasis supplied.) What strikes me about this analysis is that Nocera thinks that spending a trillion dollars (the Geithner Plan will cost at least hundreds of billions of dollars) to set the stage for actual policies to fix the problem is a good idea. Frankly, it is an amazing statement. More . . .
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