Brooks on Geithner

http://www.nytimes.com/2009/11/20/opinion/20brooks.html?em

Brooks writes that Greithner's strategy is working...what do you guys think about Brooks' opinion piece?

I think he has created a worse situation than what we had before. These massive institutions now know - they are too big to fail. If all hell breaks loose again, they'll turn to the government for help. They'll grow bigger and fatter and weaker. Basic market forces no longer apply to these companies.

As far as TARP payments go, the cost will be a net negative. Taxpayers will likely loose around 100-200 billion. That could have funded a lot of other initiatives, or better yet, never spent.

Plus, worth mentioning - the reason why these banks are now "stable" has a lot to do with Geitner changing the rules on how they value their assets. Not much has changed in the assets of these banks. Change those rules back, and suddenly we would find ourselves in a crisis again. Smoke and mirrors and a whole lot of taxpayer money - sad sad sad.

Plus, worth mentioning - the reason why these banks are now "stable" has a lot to do with Geitner changing the rules on how they value their assets. Not much has changed in the assets of these banks. Change those rules back, and suddenly we would find ourselves in a crisis again. Smoke and mirrors and a whole lot of taxpayer money - sad sad sad.

the alternative sans geithner/bernanke is depression 2, the farewell tour.