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Political Economics: Treasury Secretary Geitner's Bad Bank Plan: will it work?

Posted on: 01-Feb-2009

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Summary

The latest plan for getting banks lending again is for the government to buy their troubled assets and bundle them into one big “bad bank.” It begs the question: why aren’t the banks lending in the first place? We know that the U.S. government has already pumped $700B and change into them and that wasn’t enough to solve the problem. Is it reasonable to think that throwing more money at the problem will solve it? I'll walk you around it in this issue.

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About weQuest:
weQuest's are written by G Dan Hutcheson, his career spans more than thirty years, in which he became a well-known as a visionary for helping companies make businesses out of technology. This includes hundreds of successful programs involving product development, positioning, and launch in Semiconductor, Technology, Medicine, Energy, Business, High Tech, Enviorntment, Electronics, healthcare and Business devisions.

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