JOSEPH STIGLITZ ~ Geithner Rescue Package "Robbery of the American People"

peaceandlove · 03-27-2009, 02:19 AM

Geithner Rescue Package "Robbery of the American People"

The US government plan to free beleaguered banks of up to $1 trillion (£690bn) of toxic assets will expose American taxpayers to too much risk, leading economist Joseph Stiglitz has cautioned.

By James Quinn, Wall Street Correspondent
Last Updated: 11:45AM GMT 25 Mar 2009

The Nobel Prize-winning economist, speaking a day after the Dow Jones Industrial Average rose by almost 7pc in support of the novel public-private partnership (PPIP), said that the plan is "very flawed" and "amounts to robbery of the American people."

Professor Stiglitz on Tuesday led a list of well-known economists and high-profile industry figures who have said Treasury Secretary Tim Geithner's toxic asset plan may not be as successful as it first seems.

The plan involves ensuring up to $100bn of government funding is matched by private investors, with the monies combined and leveraged up, in some cases to by as much as 20:1, with the help of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), to buy pools of unwanted assets.

Professor Stiglitz, speaking at a conference in Hong Kong, said that the US government is essentially using the taxpayer to guarantee the downside risks, namely that these assets will fall further in value, while the upside risks, in terms of future profits, are being handed to private investors such as insurance companies, bond investors and private equity funds.

Article continues: http://www.telegraph.co.uk/finance/f...an-people.html

Sourced at: http://solari.com/blog/ Catherine Austin Fitts' website.

RON PAUL QUESTIONS GEITHNER 3/26/2009

Ron Paul Questions Geithner 3/26/2009

Posted by Matt Hawes on 03/26/09 6:38 PM

Video (5:29): http://www.campaignforliberty.com/bl...cpg=1#comments

peaceandlove · 03-27-2009, 02:22 AM

A Comment on Geithner’s Plan

Catherine and News & Commentary, March 25, 2009 at 2:03 pm

By Carolyn Betts

I am an attorney who was working in Washington with RTC during the S&L crisis, so I know something about “toxic asset” sales. I have been poking around the legal and contracting market to find out what work there is out there in reviewing, collecting data on and valuing the billions and billions (trillions?) of dollars of “toxic assets,” including the mortgage backed securities, CDOs and other derivatives created and backed by mortgages that are now “toxic.” I have several observations after reading media accounts of the Geithner plan for so-called public-private partnerships to purchase these vaguely described “toxic assets.”

Continues: http://solari.com/blog/?p=2346#more-2346

peaceandlove · 03-27-2009, 02:25 AM

Details on Treasury Public Private Partnership Investment Program

Catherine and News & Commentary, March 24, 2009 at 6:03 pm

From The U.S. Department of the Treasury Press Room

Treasury Press Release
Fact Sheet (PDF)
White Paper and FAQs

Catherine’s comments on her Community Business segment on Flashpoints on how to revise Treasury’s proposal so that it works to rebuild the economy and jobs. See, Tuesday March 24th approximately five minutes from the beginning.

Please see this page for links: http://solari.com/blog/?p=2343

03-27-2009, 02:19 AM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	JOSEPH STIGLITZ ~ Geithner Rescue Package "Robbery of the American People" Geithner Rescue Package "Robbery of the American People" The US government plan to free beleaguered banks of up to $1 trillion (£690bn) of toxic assets will expose American taxpayers to too much risk, leading economist Joseph Stiglitz has cautioned. By James Quinn, Wall Street Correspondent Last Updated: 11:45AM GMT 25 Mar 2009 The Nobel Prize-winning economist, speaking a day after the Dow Jones Industrial Average rose by almost 7pc in support of the novel public-private partnership (PPIP), said that the plan is "very flawed" and "amounts to robbery of the American people." Professor Stiglitz on Tuesday led a list of well-known economists and high-profile industry figures who have said Treasury Secretary Tim Geithner's toxic asset plan may not be as successful as it first seems. The plan involves ensuring up to $100bn of government funding is matched by private investors, with the monies combined and leveraged up, in some cases to by as much as 20:1, with the help of the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), to buy pools of unwanted assets. Professor Stiglitz, speaking at a conference in Hong Kong, said that the US government is essentially using the taxpayer to guarantee the downside risks, namely that these assets will fall further in value, while the upside risks, in terms of future profits, are being handed to private investors such as insurance companies, bond investors and private equity funds. Article continues: http://www.telegraph.co.uk/finance/f...an-people.html Sourced at: http://solari.com/blog/ Catherine Austin Fitts' website. RON PAUL QUESTIONS GEITHNER 3/26/2009 Ron Paul Questions Geithner 3/26/2009 Posted by Matt Hawes on 03/26/09 6:38 PM Video (5:29): http://www.campaignforliberty.com/bl...cpg=1#comments

03-27-2009, 02:22 AM	#2
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	A Comment on Geithner’s Plan A Comment on Geithner’s Plan Catherine and News & Commentary, March 25, 2009 at 2:03 pm By Carolyn Betts I am an attorney who was working in Washington with RTC during the S&L crisis, so I know something about “toxic asset” sales. I have been poking around the legal and contracting market to find out what work there is out there in reviewing, collecting data on and valuing the billions and billions (trillions?) of dollars of “toxic assets,” including the mortgage backed securities, CDOs and other derivatives created and backed by mortgages that are now “toxic.” I have several observations after reading media accounts of the Geithner plan for so-called public-private partnerships to purchase these vaguely described “toxic assets.” Continues: http://solari.com/blog/?p=2346#more-2346

03-27-2009, 02:25 AM	#3
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	Details on Treasury Public Private Partnership Investment Program Details on Treasury Public Private Partnership Investment Program Catherine and News & Commentary, March 24, 2009 at 6:03 pm From The U.S. Department of the Treasury Press Room Treasury Press Release Fact Sheet (PDF) White Paper and FAQs Catherine’s comments on her Community Business segment on Flashpoints on how to revise Treasury’s proposal so that it works to rebuild the economy and jobs. See, Tuesday March 24th approximately five minutes from the beginning. Please see this page for links: http://solari.com/blog/?p=2343