Treasury Secretary Tim Geithner released his desperately awaited banking-system fix last week…and the market immediately dropped several hundred points.
Why? Because the plan lacked what the market needs most right now: clarity. And, says our guest Chris Whalen of Institutional Risk Analytics, because it is just another half-measure that will attempt to prop up zombie banks and preserve the status quo.
Even as Geithner puts the finishing touches on his new hybrid public-private rescue, Whalen thinks the idea is doomed. But, he says, Geithner needs to do something, soon, or the stock market will continue to collapse.
Yahoo Tech Ticker, Feb 17, 2009