The news is all over the place that Geithner’s plan was vague and that it caused the markets to drop. I’m no economist, but I did watch Geithner’s speech and I found it to be quite excellent. Quite excellent for 2 reasons:
1) He was absolutely clear that from now on there will be transparency
2) He was clear that a new priority is to help struggling or failing homeowners
It was time that these priorities were made clear for all to see. Me thinks that investors may be scared at the idea of transparency and those that were sold today, but that’s just my opinion.
And I found this on Krugman’s blog while reading the post linked above…
Ignorance is bliss
That is, your ignorance is the drug makers’ (and the medical equipment makers’) bliss.
This is really unbelievable:
The drug and medical-device industries are mobilizing to gut a provision in the stimulus bill that would spend $1.1 billion on research comparing medical treatments, portraying it as the first step to government rationing.
Because freedom is all about laying out vast sums on medical treatments without knowing whether they’re actually doing any good.
Remember this the next time someone talks about “entitlement reform” (which will probably happen in the next three seconds or so.) Health care costs are the main reason long-term fiscal projections look so scary — and here we have corporate interest trying to prevent us, not from trying to spend our health dollar more wisely, but from even trying to find out what we get for the health care dollar.
This is truly vile.
Vile indeed. WTF are people thinking?
Those two reasons are political in nature, and though I agree with them aims, they didn’t answer the financial community’s questions about how the govt will deal with the likely bankruptcy of every large bank in this country.
Yes, you are right. In terms of dealing with bank bankruptcies we already know what will happen, the banks will get nationalized. I’m cool with that, as long as the process is transparent.
In my view the markets are gonna fall and people are gonna lose their investment values but we’ve got to rebuild the economy on a sustainable foundation.