any needed detail or new information. What has he been doing since last november? It's an avalanche of words behind which there is no clear plan or idea of what to do. Leads me to believe they think it's best to let markets and time resolve this crises.
As a BAC long, I hate Geithner's plan regardless of the market reaction.
1) Nothing specific (what he gave out was a bunch of hot air, just like Paulson). You could interpret his speech as bailing out the common, wiping them out, nationalizing the banks or outright seizing them or anywhere in between.
2) "Bad Bank" funded with primarily private capital...what market wanted was funding with mostly public capital. And what is this bank going to buy and for what?
3) More stupid capital injections...this doesn't work and more of a bad thing doesn't equal a good.
4) Needed a backstop by the SEC. Ban on naked short selling, ban on organizaed collusion (everyone buying puts or selling calls) and then naked shorting the market together.
5) MARK TO MARKET If I have a Michael Jordan rookie card I wanted to sell in a room filled with Hannah Montana fans and nobody offered to buy it, is it really worthless? The fact is that no mortgage is truly worthless, most homeowners (80-90%) will continue to pay and when they don't, the underlying collateral isn't worth 0 (god ain't making any more land, although Dubai is). It just needs a market and some time.
Shame on you Tim Geithner for lighting what little remained of the confidence in the markets on fire.