Or maybe even worse – maybe Geithner does get it and his purpose is to destroy the US Economy.
The US Treasury (and related agencies) have released the official statement about the talks with CitiGroup on Sunday. The plan is little more than a vague plan to “pump more money” into the banking system.
The only substantive change is to convert the preferred stock ownership (which had a guaranteed interest rate) into common stock ownership. This moves the US Treasury to the end of the line if the bank fails. You may remember Senator Dodd had said that in the long run, the first batch of TARP money would end up making a profit for the US Government. That is now even less likely.
The stock market immediately headed down. How many times does this have to happen before the people around Geithner realize he is the problem, not the solution?
Total carnage for today – US Stocks lost almost 4% today. Time grows short for the leadership of this country to get a clue.