It's hard
Shorter Michael Kinsley:
No offense to Mr. Kinsley, whom I generally like, but saying that it would be simpler and easier for us to simply buy the "bad debts" and bury them ("in Yucca Mountain!") is a little too...well...simplistic. And can you imagine the populist rage if we simply used tax payer money to erase the financial institution's bad bets, which is what he's proposing?
The problem, unmentioned in Kinsley's column, is what are those "toxic assets" actually worth. Buying them at face value and the tax payer takes a bath. "Undervaluing" them -- whatever that might mean -- and the firms won't sell.
Look, I have no expertise in these matters and no idea if Geithner's cunning plan will work. But it's not all that hard to understand.
UPDATE: Maybe, though, Kinsley is channeling Hamilton?
The financial rescue plan won't work because I don't understand it.
No offense to Mr. Kinsley, whom I generally like, but saying that it would be simpler and easier for us to simply buy the "bad debts" and bury them ("in Yucca Mountain!") is a little too...well...simplistic. And can you imagine the populist rage if we simply used tax payer money to erase the financial institution's bad bets, which is what he's proposing?
The problem, unmentioned in Kinsley's column, is what are those "toxic assets" actually worth. Buying them at face value and the tax payer takes a bath. "Undervaluing" them -- whatever that might mean -- and the firms won't sell.
Look, I have no expertise in these matters and no idea if Geithner's cunning plan will work. But it's not all that hard to understand.
UPDATE: Maybe, though, Kinsley is channeling Hamilton?
Labels: We're fucked actually
posted by John at 11:38 AM
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