This video clip of an interview between Henry Blodget and guest, Chris Whalen of Institutional Risk Analytics, entitled "Why Geithner's Bank Fix Will Fail" summarizes the Geithner Bank Fix Plan Situation quite well. Mr. Whalen has some words of wisdom worth listening to.
First, there is a need to give out specifics. Second, if not ready, don't make announcements. Better to be ready with specifics than to talk in generality.
Third, the US Government must be willing to consider the extreme alternative, i.e. save a few big financial institutions, and let the rest go through the normal course of survival on their own. This is because the banking crisis situation may be too large to be resolved.
Fourth, one of the issues that Treasury Secretary Timothy Geithner faces is the fact that some of the bondholders are foreign central banks that are pressurizing the US Government for a solution. This has to be resolved as there are International Politics involved.
Best wishes,
First, there is a need to give out specifics. Second, if not ready, don't make announcements. Better to be ready with specifics than to talk in generality.
Third, the US Government must be willing to consider the extreme alternative, i.e. save a few big financial institutions, and let the rest go through the normal course of survival on their own. This is because the banking crisis situation may be too large to be resolved.
Fourth, one of the issues that Treasury Secretary Timothy Geithner faces is the fact that some of the bondholders are foreign central banks that are pressurizing the US Government for a solution. This has to be resolved as there are International Politics involved.
Best wishes,
Ooi
Posts
No comments:
Post a Comment