Geithner versus Darling
US Treasury Secretary Timothy Geithner wants to get private capital on board to purchase trash from factually insolvent US banks; Alistair Darling, British Chancellor, is providing insurance for offering the same effect to British banks; which is the better solution?
I declare that question irrelevant: trash stays trash, whether it is wrapped in silver plated gold or in gold plated silver; in essence it stinks.
The only difference is that clever Timothy thinks private investors’ involvement will provide confidence into what everybody knows is rubbish; he takes the more risky path?
Not really, I dare to say there won’t be one private investor North of Cape Horn that won’t insist on a default guarantee or compensating hedging, behind closed doors.
Now that’s new? It’s the American way!