Legal Commentary

BoA Analyst: Geithner Plan Won't Work

By Big Tent Democrat

Via Atrios, a vote of no confidence for the Geithner Plan from Bank of America analyst Richard Bernstein:

Investors should sell bank stocks after they rallied 12 percent today because the Treasury Department’s plan to buy toxic assets won’t stop profits from dropping, Bank of America Corp.’s Richard Bernstein said.

Removing devalued loans and securities from banks’ balance sheets is a short-term solution that will delay the problem’s ultimate solution, which is bank takeovers, Bernstein said. The government won’t be able to inflate the prices banks receive for selling bad assets indefinitely, he added.

But Krugman always hated Obama so it can't be true.

Speaking for me only

Full post as published by TalkLeft on March 23, 2009 (boomark / email).