Green Options » hank paulson http://greenoptions.com/tag/hank-paulson Posts tagged 'hank paulson' Fri, 13 Feb 2009 06:40:49 +0000 http://wordpress.org/?v=2.5.1 en Does The Bank Bailout Spell Socialism? Why Won’t Geithner Let “Zombie Banks” Fail? http://inspiredeconomist.com/2009/02/13/does-the-bank-bailout-spell-socialism-why-wont-geithner-let-zombie-banks-fail/ http://inspiredeconomist.com/2009/02/13/does-the-bank-bailout-spell-socialism-why-wont-geithner-let-zombie-banks-fail/#comments Fri, 13 Feb 2009 06:40:49 +0000 Reenita Malhotra http://inspiredeconomist.com/2009/02/13/does-the-bank-bailout-spell-socialism-why-wont-geithner-let-zombie-banks-fail/

President Obama has come under the radar. Publications like the Huffington Post and the Financial Times are questioning whether he has failed already. Why? Because Tim Geithner has proposed a bailout plan for zombie banks that capitalists believe should be allowed to fail.

The writing is on the wall. Critics and journalists are pointing fingers at Geithner’s plan.  Martin Wolf of the FT goes as far as to say that if the plan fails then so will Obama’s credibility. Arianna Huffington says that Time Geithner is on the wrong side of the issue and that much like his predecessor Hank Paulson, he is more concerned about saving certain banks rather than saving the banking industry.

Read more of this story »

]]> http://inspiredeconomist.com/2009/02/13/does-the-bank-bailout-spell-socialism-why-wont-geithner-let-zombie-banks-fail/feed/ Economy In Recession: The Cost Of Allowing Lehman Brothers to Fail http://inspiredeconomist.com/2008/10/15/economy-in-recession-the-cost-of-allowing-lehman-brothers-to-fail/ http://inspiredeconomist.com/2008/10/15/economy-in-recession-the-cost-of-allowing-lehman-brothers-to-fail/#comments Wed, 15 Oct 2008 06:26:01 +0000 Reenita Malhotra http://inspiredeconomist.com/2008/10/15/economy-in-recession-the-cost-of-allowing-lehman-brothers-to-fail/ The failure of Lehman Brothers is seen as the last straw that broke the credit market. The financial markets have been in a state of complete disarray ever since the U.S. Government allowed Lehman Brothers to file for bankruptcy on September 15th 2008 instead of intervening to save it, as it did with Bear Sterns and later with the insurance company, American International Group.

Many have questioned U.S. Treasury Secretary Hank Paulson’s decision to let Lehman Brothers fail. Christine Lagarde, French finance minister, claimed that the decision was “horrendous.” This has been echoed by many other European policy makers and investors who blame the decision on ideology, claiming that Paulson refused to offer aid to avoid accusations of moral hazard.

Read more of this story »

]]> http://inspiredeconomist.com/2008/10/15/economy-in-recession-the-cost-of-allowing-lehman-brothers-to-fail/feed/