God’s gift to Wall Street, Secretary Treasury Tim Geithner, says he has finally convinced Europe that the world will end if Europe doesn’t bail everyone out the way the US did.On ABC’s World News With Diane Sawyer, Geithner said that Europe finally gets it:
“If you listen carefully to what they said this weekend, not just to us in private, but what they said publicly, they’re foreshadowing now the escalation that’s going to come. And we’d like them to get on with it.”
The “escalation,” presumably, is a full-on Euro-TARP bailout, in which the losses on the idiot loans made by Europe’s banks to Europe’s fringe countries are transferred to Europe’s taxpayers.
One can only hope that the rescue plan willl include forced bank writedowns and recapitalizations, which Geithner’s US version of the bailout didn’t–an error for which the country is still paying the price.
Geithner put the fear of God in Europe at the IMF meeting, at which he warned of “cascading default, bank runs and catastrophic risk” if Europe didn’t get the situation under control.
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