Tuesday, March 31, 2009

Dr. Krause on WISN-TV 12 last week commenting about the Geithner bailout plan

U.S. Treasury Secretary Timothy Geithner unveiled a plan aimed at persuading private investors to help rid banks up to $1 trillion in toxic assets that that are seen as a roadblock to economic recovery. While some economists, such as Princeton's Paul Krugman, believe the Treasury's bailout program is going to fail, others are more optimistic.

Dr. David Krause, AIM Director, said on WISN-TV 12 recently that he thinks private investors, such as PIMCO, will support the plan. "The Geithner plan is such a good deal for investors that they will likely support it. The plan essentially offers a one-way bet: if asset values go up, the investors profit, but if they go down, the investors can walk away from their debt. I think that Bill Gross and other investors will find the terms too attractive to ignore."

To see the interview with Dr. Krause go to:
http://www.wisconsinmediaservices.com/marquette/mu_toxic.wmv

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