My lack of economic credentials — I am, after all, a lowly B.S. in Economics (which is ironic and appropriate these days) — may lead some to conclude that my tirade against the Geither bailout plan on this week’s P.I.D. Radio was motivated only by politics. Not so.
Mish draws together a sampling of opinion on Geithner’s plan from guys left, right, and center who earn their bread by analyzing the economy, and they like the plan about as well as I do, which is not at all.
- Since when is someone who puts 3% of total funds and gets 20% of the equity a “partner”?
- [N]otice the utter dishonesty: a competitive bidding process will protect taxpayers. Huh? A competitive bidding process will elicit a higher price which is BAD for taxpayers!
- The Obama administration is now completely wedded to the idea that…if we get investors to understand that toxic waste is really, truly worth much more than anyone is willing to pay for it, all our problems will be solved.
- Geithner’s plan is sheer hocus-pocus idiocy.
- I think the plan is a gigantic confidence game. This is similar in nature to fraudulent schemes that promise “what’s inside the bag is worth $1 million, unless you open the bag”.
The last line comes from Mish, and it’s dead on. As with Schrodinger and his cat, we’re supposed to assume that there’s life in those assets — just don’t look inside the box.