Jeffrey Sachs writes:
Cynics believe that the Geithner-Summers Plan is exactly what it seems: a naked grab of taxpayer money for Wall Street interests. Geithner and Summers argue that it's the least bad approach to a messy situation, in which we need to restore banking functions but don't have any perfect ways to do that. If they are serious about their justification, let them come forward to confront their critics and to explain to the American people why the other proposals are not being pursued.
Let them explain the hidden and not-so-hidden risks to the American taxpayer of the plan that they have put forward. Let them explain why they are so intent on saving the banks' bondholders, even the long-term unsecured creditors who clearly knew they were taking market risks in buying Citibank bonds. Let them work with their critics to fashion a less risky and less costly plan. So far Geithner and Summers tell us that their plan is the only option, but without a word of further explanation as to why.
It continues to mystify me that Obama hasn't really made room in his economic team for other points of view other than the Summers/Geithner/Rubin neo-liberal perspective. Doesn't he believe in real dialogue and debate in policy formation? I'm sure he does, but he, who readily acknowledges his shortcomings in economics, hasn't done that in what is surely the most significant area of our national life.
Go figure.
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