Geithner is dismissing GOP Socialism Charge as ‘Ridiculous’. I dismiss Geithner’s rebuttal on the basis Geithner is a liar. Tune in if you can stand listening:
The Washington Post picks up the story in Geithner Dismisses GOP Socialism Charge as ‘Ridiculous’.
“There’s still a bit of concern about whether, if you participated in these programs, you’ll face in the future some change in the rules of the game, and that’s causing a bit of — a bit of concern,” Geithner told The Post’s Lois Romano for her continuing “Voices of Power” interview series. Private investors have expressed interest in the program, the government will work to limit their concern and he anticipates they will be “a good deal for the American taxpayer.”
“That’s the important thing to recognize,” he said, “because you — you have in this basic structure, investors putting skin into the game, taking risk, making judgments about what the price should be for these securities, and the taxpayer gets to participate in the upside in those judgments. So we think they’re a good deal for the taxpayer.”
Geithner is a Liar
The idea that investors have a skin in the game when the Fed picked the “investors” in the PPIP is a complete farce and taxpayers face 93% of the losses is absurd.
Ironically Geithner’s Plan Can Succeed as long as one is fully aware that succeed means the plan is to ….
Dump $500 billion of toxic assets on to unsuspecting taxpayers via a public-private partnership in which 93% of the losses are born by the taxpayer.
Please see the above link for more details as to what constitutes “success”.
Mike “Mish” Shedlock
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