This blog in English. Apologies as it concerns US economics, I thought there may be some foreign interest in the blog.

Tim Geithner will be announcing the plan for toxic assets US banks. I have read the NY Times article which explains the details, and to be honest I am suprised to see President Obama and Team Economy Obama go with this route. The leaked plan is very similar to all the toxic asset plans explained before, and frankly did not ring any bells with the general public before. The 85% non-recourse debt for private investors providing 15% equity to bet on the toxic assets auction sounds like a great idea - for the private investors considering their downside risk is quite low in case of default (unless Team Economy Obama know something we don’t - that these assets will most definitely default therefore it is better to get private money on as much as possible).

I am worried, not because I don’t trust President Obama and his economic team to get USA (and from there the World economy) out of trouble, but the route he is taking is a very difficult one which could end up with Mr. Geithner’s resignation and period of increased political instability as President Obama loses approval during his first year of Presidency. I would like to see President Obama get elected for another four-year term and with this route his Presidency may be entangled with an issue which may stay with him throughout his first term.

Britney:

With a taste of your lips
I’m on a ride
You’re toxic I’m slipping under
With a taste of a poison paradise
I’m addicted to you
Don’t you know that you’re toxic…