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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Reilly Diefenbach who wrote (192643)	3/23/2009 2:04:56 PM
From: Think4Yourself	Read Replies (2) \| Respond to of 306849

The financial system was collapsing. It was Obama's choice, but he was boxed in by time and the number of people who understood the problem. In other words, he was the decision maker but he had no "real" choice.

To: Reilly Diefenbach who wrote (192643)	3/23/2009 4:40:23 PM
From: DebtBomb	Respond to of 306849

Geithner's Rehash of Bush Policy Won't Work, Paul Krugman Says By Alan Purkiss March 23 (Bloomberg) -- Treasury Secretary Tim Geithner's espousal of a modified plan for buying toxic assets assumes that banks are basically sound and bankers know what they're doing, said Paul Krugman, a professor of international economics at Princeton University. Writing in the New York Times, he said there's a tried-and-tested procedure for tackling the aftermath of widespread financial failure: the government guarantees many or all bank debts and it takes temporary control of insolvent lenders. Financial executives gambled their banks on the belief that there was no housing bubble and that the level of household debt was no problem; they were wrong, and so the Geithner plan will almost certainly fail, Krugman said. When it does, Obama probably won't be able to persuade Congress to provide more money to do what he should have done in the first place, the economist concluded. bloomberg.com