Don’t be idiots you guys. Read Thom Friedman’s op ed in today’s Times. This thing is a giant world-wide house of cards and Geithner and his advisors know perfectly well what is going on. Whether their plan will work will remain to be seen but don’t think they are clueless.
There were seminars on Systemic risk, bubbles and regulating derivatives within the Federal Reserve for the past 15 years and many many many smart economists, regulators, lawyers, and market specialists within the System knew EXACTLY what was happening. I know this because I sat in those seminars. Ultimately the kibosh was put on attempts at serious regulation by the powers that be in Washington at the time. Don’t worry, Geithner gets it big time.
