Obama, Geithner, Summers Plan for “Toxic Assets” May be Toxic Itself

 Barack Obama’s economic team is in serious  jeopardy  of getting bogged down as they attempt to extricate America from the “toxic asset,” bad bank and financial crisis.The objective is to get lending going and they centerpiece is trust and confidence.

Obama is banking that his strong poll numbers will translate into the public trust and confidence he’ll need to reform, some say overhaul, and some say radically attack the financial system and Wall Street.

But pollster Frank Luntz and others say although the public approves of Obama himself, they reject some of his policies.

It could just be that Geithener, Larry Summers and Barney Frank are ill suited to carrying the load they are under.  And then again, maybe they created a load that is a load of c**p.

The Geithner, Summers, Obama plan may be too radical, too complex and too elusive to even explain — if and when the details become known….

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“You’re talking about seizing private businesses and you don’t consider that radical?” Manzullo [Rep. Donalsd Manzullo; R-Ill] replied, his voice rising.

Manzullo is trying to get [Treasury Secretry Timothy] Geithner to give details of the plan — that’s where Geithner got stung before — but Geithner doesn’t have them yet.

If the plan were not radical, Manzullo said to Geithner, “you would have answers to some of my questions, such as, what size business would be subject to this?”

From The Washington Post
http://voices.washingtonpost.com/econom
y-watch/2009/03/geithner_new_rules_o
f_the_game.html?hpid=topnews

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By MARTIN CRUTSINGER, AP Economics Writer

Wall Street wizards

have proved adept at designing complex financial products to sidestep existing regulations. And Vincent Reinhart, former director of monetary affairs at the Federal Reserve, says, “You’re going to see firms try to figure out how to be under the radar.”

For example, private equity investors might try to buy large hedge funds and chop them into funds that would be small enough to operate unregulated, Reinhart said.

Treasury Secretary Timothy Geithner, unveiling the plan Thursday, said the nation’s economic crisis demands bold action.

“We need much stronger standards for openness, transparency and plain commonsense language throughout the financial system,” he told the House Financial Services Committee.

House Financial Services Committee Chairman Barney Frank, D-Mass., ... 
House Financial Services Committee Chairman Barney Frank, D-Mass., concludes a hearing on President Obama’s proposals for an extensive overhaul of financial regulations with Treasury Secretary Timothy Geithner there to defend the plan, on Capitol Hill in Washington, Thursday, March 26, 2009. (AP Photo/J. Scott Applewhite)

Read the rest:
http://news.yahoo.com/s/ap/200903
27/ap_on_go_ca_st_pe/financial_regulation

Related:
Obama’s public overexposure

Obama Still Thinks After Economy Recovers; Bank, Finance Good Times Can Return?

 Obama’s Economic “Rescue;” “The plan is very, very clever. Maybe too clever.”

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