“The most important aspect of Geithner’s plan is not necessarily the details of the scheme but rather the increase in confidence in the market that this plan has already brought (the Dow jumped almost 7% on Monday).”
The DOW then proceeded to lose 115.65 points the very next day. Monday’s results may be evidence of a sucker bounce. Third Way policies are inherently dubious. At the end of the day, the politicians run the show and the business community is of secondary importance. The free market no longer decides the winners and the losers. Investors must now constantly worry about the Obama administration arbitrarily changing the rules anytime it so desires. What happens, for instance, if they earn “too much money?” Also, who will receive the new loans? The high likelihood is that they will go to those favored by the political establishment. The so-called green technologies will most assuredly benefit. Drillers for oil and builders of coal plants will be ignored.
