Geithner Obama Kowtowing to "Massively Corrupted" Banks Galbraith Says

Yahoo Tech ticker interviews Galbraith who says Obama and Geithner have been pushed over by the big banks and colluded in the cover up. Watch the video interviews below.

Krugman agrees with Galbraith - see Krugmans weekend BLOG at nytimes where he says "The zombie ideas have won. The Obama ministration is now completely wedded to the idea that there’s nothing fundamentally wrong with the financial system — that what we’re facing is the equivalent of a run on an essentially sound bank."

What is going to happen with this new TARP is this: Banks through 3rd parties will purchase their own toxic assets at an inflated price. Why you ask? - the banks will only have to put up 5% of the purchase price. 5%? yes, the taxpayers pay the additional 95%, thus taking almost all the risk. The banks get to offload their toxic assets at inflated prices for only a 5% loss. Great deal for the banks - awful deal for the taxpayers!!! See this link for a more detailed explanation.

Galbraith says that putting the banks into FDIC receivership will be the only way that the corruption is uncovered:

"Crucially, FDIC receivership also means new management teams for insolvent banks; and Galbraith notes new leaders will have no incentive to cover up the fraudulent or predatory lending practices of their predecessors. Given the entire system was "massively corrupted by the subprime debacle," the professor believes criminal prosecutions on par with the aftermath of the S&L crisis - when hundreds of insiders went to jail - is a likely (and necessary) outcome of the current crisis."

Part I Geithner's Plan "Extremely Dangerous," Economist Galbraith Says

Part II Geithner Obama Kowtowing to "Massively Corrupted" Banks Galbraith Says

Part III "Happy Talk" Won't Solve Crisis, Galbraith Says: Much More Govt. Action Needed

"But don't expect to see many 'perp walks' if Geithner's current plan comes to fruition. That's one reason Galbraith called the plan 'extremely dangerous' in part one of our interview.

So why isn't the Obama administration pushing for FDIC receivership? 'Political influence of big banks,' the economist says."

Please contact your representatives and newspapers and expose this looting of the treasury! Follow the money trail - it goes from the taxpayer pockets, to our congress and then to the megabanks and wall street cronies!