CNN says that Geithner will delay the results of the "stress tests" on banks "until after the first-quarter earnings season [ends for most banks on April 24] to avoid complicating stock market reaction".
In other words, instead of closing the insolvent zombie banks in order to save the economy (leading economists say that we have to let the banks fail or the economy will not recover), Geithner will delay announcing that the banks are broke so that their stock remains artificially high. Indeed, in Washington parlance, "delaying" the release of information often means burying them forever.
We may never see the results of the stress tests. This could just be a ploy from Geithner to buy time, just like the tobacco company scientists said they had to conduct further studies on whether or not cigarettes were harmful, and that they would announce the results as soon as the studies were complete.
No comments:
Post a Comment
→ Thank you for contributing to the conversation by commenting. We try to read all of the comments (but don't always have the time).
→ If you write a long comment, please use paragraph breaks. Otherwise, no one will read it. Many people still won't read it, so shorter is usually better (but it's your choice).
→ The following types of comments will be deleted if we happen to see them:
-- Comments that criticize any class of people as a whole, especially when based on an attribute they don't have control over
-- Comments that explicitly call for violence
→ Because we do not read all of the comments, I am not responsible for any unlawful or distasteful comments.