Did Geithner really bomb?

February 12, 2009

Barry doesn’t think so:

I have a decidely different take. Wall street was hoping for another multi-billion, no strings attached, taxpayer funded giveaway. Instead, they got something much tougher than they expected.

Hence, the selloff/tantrum.

They wanted their candy and didn’t get it…

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One Response to “Did Geithner really bomb?”

  1. still thinking of one Says:

    So there’s a huge confusion going on in reference to the definition of ‘Wall Street’. My sample is limited to you and Jon Stewart, but I assume you represent a large demographic 😉 ‘Wall Street’ as in financial markets are completely different from ‘Wall Street’ as financial companies. It’s like laying the blame for California budget paralysis on Highway patrol because they are paid by the state. Financial companies are direct beneficiaries of the bailout. Financial markets will only benefit from economic recovery (desired outcome of bailout). If only financial stocks went down on announcement then your claim about the strings has grounds, but declines were actually greater in non-financial stocks which means the market does not believe the proposal will lead to economic recovery. Which means the proposal bombed. At least initially. The lack of follow through on selling means people either still have hope or they have no idea what’s going to happen (good or bad). Personally I feel it’s the latter, but we’ll have opportunity to discuss my views on the ‘science’ of economics and economists in greater detail next Saturday.


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