We need an economic QB that is bold , decisive but most of all honest and QB Geithner lacks all of these qualities. Is there anyone who will believe the results of this stress test and can’t see the huge hosing this Public Private partnership is going to apply to the US taxpayer? He keeps telling us how complicated it is but we ain’t all dumb.

I started posting “buy a home, get a greencard” this winter before the Shilling/Lefrak article, sadly it never gained any momentum. The imbalance between sellers of foreclosed properties and the buyers will push prices into another vortex with trillions being thrown at the banks we’ve formally declared immortal

“No, you can’t [let these guys go bankrupt ] … unless you want 25% unemployment again”.

This sounds a lot like what the typical bailout advocate argues. They argue, essentially, that we have ONLY two choices: (a) do it exactly the way that Paulson and Geithner want to do it, or (b) face annihilation of the financial system. For bailout advocates there is never a third choice.
How about this for a third choice? Break up Citi and BAC (and wipe out the bondholders), and put AIG into bankruptcy. Temporarily nationalize any of these three companies to facilitate the process. This would have done a world of good if done last September.

I have yet to hear a bailout advocate admit that there’s a third option.

But I love John Mauldin. Absolutely the best common sense writing out there. Thanks to him for allowing BR to post his stuff.