The Geithnerconomy And The New Cold War -- A Commentary

Timothy F. Geithner during a hearing before the House Financial Services Committee in July. (Photo: Alex Wong/Getty Images)

From Business Week:

The probable outcome of the Geithner plan is going to make today's crisis look like a zit on the face of the Elephant Man, writes Umair Haque

Let's make a deal. We'll make some bets together, and you get a fifth of the upside—but only a fiftieth of the downside.

Seems awfully generous of me, doesn't it? That's the plea the Geithner Plan makes to hedge funds.

Unfortunately for the global economy, the dollar, and, well, your future, that's a great bet for funds—but a terrible bet for the rest of us. The probable outcome of the Geithner plan is going to make today's crisis look like a zit on the face of the Elephant Man.

Why? Let's get the bean counting out of the way. For staking $30 billion out of $1 trillion, funds take a 17% of the profits. Think about the inequity inherent in that equation for a second.

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