Ignore those Nobel Economists! Action on short selling! Mr. Geithner!
Based on my experience, there is no model, such asSweden model, Japan model or Hong Kong model can justify now the US andglobal recession.To my surprise, two elite universities’ Nobel Economists, Paul Krugman and Joseph Stiglitz still insist bank nationalization. However, these two Professors, none has the research or publications on Bank nationalization. To the worst, they are not macroeconomists, their specialty are none on recession or history economics. I think, Mr. Geithner can totally ignore them on Big Bank nationalization and their verbal or written suggestion on recession. ( to his credit, Prof. Krugman did predict the foreclosure came! I am too!)
The weakest link of the Prof. Stiglitz and Krugman, their main idea just want to bankrupt the bank and get rid of the so-called toxic assets! Later resell the may be healthy Bank! Is that simply? Crush the Citi or Bank of America what they called zombie bank. Then the recession may have a better chance recover?I do not think so, the root of problems: foreclosure, job losing, houses price down, industry shrinking are still there!
After the stress testing, to my understand OUR BANKING SYSTEM IS RECOVERED and O.K NOW! How do I know? Don’t’ ask! Compare the global standard of banking, I do not think we need to take care Citi and Bank of America! To lend a jargon from Track and Field, we are on same starting line! AND WE EVEN HAVE MORE ATPs! (What ATPs? Don’t ask again!) In game theory, we have the same card as the other bank! I do not think Citi or Bank of America is weaker than UBSAG of Switzerland and RBS of Britain? JPM is weaker than HKBC? Not a bit!
If the situation of Job lost , foreclosure, house price, credit card default, industry are getting worse. All the banks in global except a few in China or India are getting worsen too. To the end , we are in the same starting line! There may be a few small bank go nationalized and banrupted in US, as long as they are small, they will notaffect the whole picture.
Onestill worries me very much is that, if there is unpatriotic George Soros or smart “Chinese Solos” kind ofspeculators. They would use what so-called zombie big bank must be nationalized if not the banking system will be getting worsen,proposed by the Nobel Economists, and the result of Bank’s stress test. The speculators will short -sell the weaker Banks first then later the stronger banks in US! If this kind the fear is spread, the whole US banking system will be collapsed! You do not have to ask the Nobel Economists. You know the worst depression will be waiting!
Before announce the result of Bank Stress Testing. Mr. Geithner and the SEC should take care the short selling first! Action Please! Mr. Geithner, you job is not winning Nobel Prize like the bank-nationalized Professors, but save the America from recession (this bigger than winning the Nobel!!)Deal with the short selling! NOW!
