Either tonight or certainly by the end of the week, something will begin to dawn on those who have not yet twigged to it about Geithner's plan:If something is being carried on a bank's balance sheet at $80, but it's only worth $30, there is no plan in the world which can make it worth $80.Maybe then, they will start asking the correct question, which is:Who takes the $50 loss?Why is everyone thinking it will be either the banks or the private sector? Of course it won't be. Little Timmy knows that it'll be the US taxpayer, because the banks are refusing to take the losses (it would bankrupt them) and the private investors are too smart to take it.
So, one of two things will happen: either the plan is designed to ensure the taxpayer gets shafted; or the plan fails just like MLEC, "good bank/bad bank", etc, etc, etc. because nobody in the private sector trusts the banks anymore.
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