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Jeffrey D. Sachs speaks

April 7, 2009

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

via The Geithner-Summers Plan is Even Worse Than We Thought | CommonDreams.org.

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