Well that was a dud!
For a couple weeks now everybody has been looking forward with great anticipation to the Obama Team’s plan for dealing with the banks. It was going to come last week. Then it was going to be Monday. Finally this morning Geithner comes out and essentially says “We’re still working on it guys!”.
The outlines of the plan are a public/private partnership – a Public-Private Investment Fund. The idea is to bring in private investors to deal with the thorny problem of valuing these toxic mortgage assets and give these private investors access to government money for their purchases.
But the details are not yet finalized: “We are exploring a range of different structures for this program, and will seek input from market participants and the public as we design it.”
It’s almost like a student who has to give a presentation and doesn’t start working on it until the night before and then just tries to wing it. It doesn’t work.
After all the build up, that’s a real let down and it’s why the Dow is off about 300 points.
For the same perspective, also check out Bob Pisani “Geithner Disappoints With Lack of Details”.