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Geithner Plan Will Rob US Taxpayers: Stiglitz

Posted By admin On March 24, 2009 @ 5:16 am In Featured Stories,Money Watch | Comments Disabled

Reuters [1]
Tuesday, March 24, 2009

The U.S. government plan to rid banks of toxic assets will rob American taxpayers by exposing them to too much risk and is unlikely to work as long as the economy remains weak, Nobel Prize-winning economist Joseph Stiglitz said on Tuesday.

“The Geithner plan is very badly flawed,” Stiglitz told Reuters in an interview during a Credit Suisse Asian Investment Conference in Hong Kong.

U.S. Treasury Secretary Timothy Geithner’s plan to wipe up to US$1 trillion in bad debt off banks’ balance sheets, unveiled on Monday, offered “perverse incentives”, Stiglitz said.

Geithner Plan Will Rob US Taxpayers: Stiglitz obamadecept 340x169 [2]

The U.S. government is basically using the taxpayer to guarantee against downside risk on the value of these assets, while giving the upside, or potential profits, to private investors, he said.

“Quite frankly, this amounts to robbery of the American people. I don’t think it’s going to work because I think there’ll be a lot of anger about putting the losses so much on the shoulder of the American taxpayer.”

Full article here [1]

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URLs in this post:

[1] Reuters: http://www.cnbc.com/id/29848741

[2] Image: http://www.prisonplanet.tv/subscribe.html

[3] Nobel Laureate Dr. Joseph Stiglitz Says “The Geithner Plan Amounts To Robbery Of The American People”: http://www.prisonplanet.com/nobel-laureate-dr-joseph-stiglitz-says-the-geithner-plan-amounts-to-robbery-of-the-american-people.html

[4] Stiglitz: Bank Plan Makes Taxpayers Suckers: http://www.prisonplanet.com/stiglitz-bank-plan-makes-taxpayers-suckers.html

[5] Stiglitz Criticizes Bad Bank Plan as Swapping ‘Cash for Trash’: http://www.prisonplanet.com/stiglitz-criticizes-bad-bank-plan-as-swapping-%e2%80%98cash-for-trash%e2%80%99.html

[6] Toxic Asset Plan Will Leave The Same Amount Of Toxic Assets In The System, But With the Taxpayers Now Liable For Most Of The Losses: http://www.prisonplanet.com/toxic-asset-plan-will-leave-the-same-amount-of-toxic-assets-in-the-system-but-with-the-taxpayers-now-liable-for-most-of-the-losses.html

[7] Stiglitz Says Banking Problems Are Now Bigger Than Pre-Lehman: http://www.prisonplanet.com/stiglitz-says-banking-problems-are-now-bigger-than-pre-lehman.html

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