First Draft: toxic central

March 23, 2009

It’s all about toxic assets today.

The Obama administration has come up with a plan to deal with those loans that are so underwater you need a deep-sea diving outfit to find them (kind of like my NCAA bracket, but that’s another sad story).

OBAMA/The plan is for the government to partner with the private sector — including hedge funds (remember their role in bringing the markets down?) — and provide an antidote for the  toxicity of the bad loans.

Christina Romer, a White House economic adviser, in her explanation of the program managed to mix a sports metaphor with a coin toss (again we’re back to the NCAA bracket).

“This is really tails both the government and the private sector win, heads both the government and the private sector lose,” Romer said on ABC’s “Good Morning America”  show. “We both are going to have, as the saying goes, skin in the game.”

Treasury Secretary Timothy Geithner gets a chance to comfort jittery financial markets by providing details of the plan this morning. Let’s see if his performance improves over last time, when he layed out an outline and the markets tumbled.

CHINA/And then again there’s always the birthday cake analogy. “It’s kind of like a horrible birthday cake with fire, the candles are burning all over it, we’re trying to blow out the candles in every direction,” Austan Goolsbee, a member of the White House Council of Economic Advisers told Reuters Financial Television.

Click here for more Reuters political coverage 

Photo credit: Reuters/Jason Reed (Geithner at White House event earlier this month), Reuters/stringer Shanghai (panda eats birthday cake at zoo in China)

2 comments

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spending money we don,t have can never be the solution.the idea that we can spend to maintain present standards is not going to work.it is like having a credit card and increasing the deficit every month,eventually you are going to reach the maximum you are allowed.sadly most of the worlds economies rely on america buying their goods.the entitlement mentality that has prevailed here in recent times is going to cause social unrest,as politicians try to lay blame else were.to try and create a new bubble to disguise the underlying deficit problems will not happen.sorry i think there are hard times a head.

Posted by brian lee | Report as abusive

Heads we we all win, tails we all loose? 50/50 odds. That surely inspires confidence. I would have set the bar a little lower. Here’s an interesting metaphor. A weapon of “mass distraction” custom to address looming economic “mass destruction.”

Posted by Anubis | Report as abusive