The damage of Geithner plan goes far beyond the abuse of taxpayer money. Suppose that with the help of the plan a “toxic” asset indeed moves from the balance sheet of (toxic?) bank OldCo and becomes a real sweetie on the balance sheet of NewCo. What happened to the national economy? Was a single new job created? Was there increase in GNP? Is there a new technological breakthrough on the horizon? Did the country or any part of it become “greener?” ; Nothing of this sort. The notion that artificial manipulation of financial instruments, products or accounting documents without any real underlying actions can do anything substantial was and still is the root of all evil.
— Aharon Meytahl
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