Comments on: Geithner’s Plan: one of the most regressive wealth transfers of all time http://www.creditwritedowns.com/2009/03/geithners-plan-one-of-the-most-regressive-wealth-transfers-of-all-time.html a finance news and opinion site Mon, 22 Mar 2010 06:53:58 +0000 hourly 1 By: How not to solve a financial crisis « naked capitalismhttp://www.creditwritedowns.com/2009/03/geithners-plan-one-of-the-most-regressive-wealth-transfers-of-all-time.html#comment-8721 How not to solve a financial crisis « naked capitalism Mon, 28 Dec 2009 18:58:25 +0000 http://www.creditwritedowns.com/?p=7407#comment-8721 [...] Geithner’s Plan: one of the most regressive wealth transfers of all time – Mar 2009 [...] [...] Geithner’s Plan: one of the most regressive wealth transfers of all time – Mar 2009 [...]

]]> By: Edward Harrisonhttp://www.creditwritedowns.com/2009/03/geithners-plan-one-of-the-most-regressive-wealth-transfers-of-all-time.html#comment-4523 Edward Harrison Wed, 25 Mar 2009 11:50:03 +0000 http://www.creditwritedowns.com/?p=7407#comment-4523 Vangel,I have really been of two minds here. If you read some earlier posts, you can tell that I agree with your ideas regarding the need to liquidate malinvestments. The political reality necessitates a measured response i.e. stimulus in order to assuage the brunt of the impact from this credit contraction. But, no sustainable recovery is in the offing until the malinvestments (in housing, leveraged finance, autos and other durable goods consumption areas) are substantially worked off.That said, both parties do have a vested interest in maintaining the status quo and this means perpetuating the existing malinvestents. The Democrats are beholden to special interests too! My hope (and I suspect Marshall's too), however, is that grass-roots Democrats and Liberterians will force a re-balancing of the U.S. economy toward sustainable consumption and debt levels and an increased real wage for ordinary Americans. Vangel,

I have really been of two minds here. If you read some earlier posts, you can tell that I agree with your ideas regarding the need to liquidate malinvestments. The political reality necessitates a measured response i.e. stimulus in order to assuage the brunt of the impact from this credit contraction. But, no sustainable recovery is in the offing until the malinvestments (in housing, leveraged finance, autos and other durable goods consumption areas) are substantially worked off.

That said, both parties do have a vested interest in maintaining the status quo and this means perpetuating the existing malinvestents. The Democrats are beholden to special interests too! My hope (and I suspect Marshall’s too), however, is that grass-roots Democrats and Liberterians will force a re-balancing of the U.S. economy toward sustainable consumption and debt levels and an increased real wage for ordinary Americans.

]]> By: Vangelhttp://www.creditwritedowns.com/2009/03/geithners-plan-one-of-the-most-regressive-wealth-transfers-of-all-time.html#comment-4517 Vangel Tue, 24 Mar 2009 23:23:30 +0000 http://www.creditwritedowns.com/?p=7407#comment-4517 The Geithner Plan should not be a surprise to anyone. And neither should be the revelation that there is little difference between methods taken by Democrats and Republicans. It should be obvious to all objective observers that there is very little difference between the two main American parties. Both parties support the growth of big government and the meddling with markets by the use of the regulatory process. As such both parties tend to appoint incompetent bureaucrats who fear the free markets and use their power to protect and reward politically connected supporters.The Geithner Plan may seem to work for a short period of time but it cannot do away with the necessity to liquidate malinvestments before the real economy can have a sustainable recovery. Sadly, most voters don't seem to get it because they have too much invested emotionally in one of the two major parties to ever see that there is a real alternative. The Geithner Plan should not be a surprise to anyone. And neither should be the revelation that there is little difference between methods taken by Democrats and Republicans. It should be obvious to all objective observers that there is very little difference between the two main American parties. Both parties support the growth of big government and the meddling with markets by the use of the regulatory process. As such both parties tend to appoint incompetent bureaucrats who fear the free markets and use their power to protect and reward politically connected supporters.

The Geithner Plan may seem to work for a short period of time but it cannot do away with the necessity to liquidate malinvestments before the real economy can have a sustainable recovery. Sadly, most voters don’t seem to get it because they have too much invested emotionally in one of the two major parties to ever see that there is a real alternative.

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