The Financial Crisis and Geithner's Faux Solution

He is using TARP funding, Federal Reserve Funds, Fannie Mae & Freddie Mac funds, and FDIC guarantees to make subprime investments and subprime loans with govt. guarantees to insolvent (subprime) financial institutions. The risk to the taxpayers is measured in trillions of dollars.

I don't think investor confidence will be earned by Geithner's plan to restore Wall Street's House of Cards with high risk investment of taxpayer funds and his bogus Stress Tests and changes coerced from the FASB to relax its standard for mark to market accounting all in leiu of substantive regulatory reform.


There may be some short term success and profit taking from short lived market rallies but this is not a long term solution.