Tuesday, May 12, 2009
Baker: If the Stress Tests are Accurate and the Banks Are Solvent, then Get the Bankers' Hands Out of Our Pockets
Everyone knows that the stress tests were a p.r. stunt and that the big banks are really all insolvent.
But economist Dean Baker has a different take on it.
Okay, Baker says. Let's pretend that the stress tests were accurate. They show the banking system has stabilized, and that none of the banks are insolvent.
Then cancel the trillions in emergency bailouts, including the PPIP toxic asset scam, the countless billions being funneled to AIG's credit default swap buyers, and all of the other crazy bailout schemes.
Banker ends with this great quote:
In short, we should take the stress test results as good news. Based on what Geithner has told [us], the bailouts should be over. It's time for the banks to stand on their own two feet and to get their hands out of our pockets.