{"id":299553,"date":"2010-02-09T17:56:52","date_gmt":"2010-02-09T22:56:52","guid":{"rendered":"http:\/\/www.businessinsider.com\/dont-be-fooled-by-greek-bailout-optimism-this-is-tarp-20-2010-2"},"modified":"2010-02-09T17:56:52","modified_gmt":"2010-02-09T22:56:52","slug":"dont-be-fooled-by-greek-bailout-optimism-this-is-tarp-2-0","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/299553","title":{"rendered":"Don’t Be Fooled By Greek Bailout Optimism, This Is TARP 2.0"},"content":{"rendered":"

\"Hank<\/p>\n

As we observed earlier<\/a>, today’s stunning market surge reminded us of the day back in October 2008, when news first broke that Hank Paulson was mulling a program that we’d come to learn would be called TARP.<\/p>\n

We had a brief surge before ultimately plunging soon thereafter.<\/p>\n

The bottom line is that like the initial TARP — which bore no resemblance to the later TARP — nobody has any idea how a Greek bailout is going to work.<\/p>\n

What we do know is that any effort by Central Europe to stem the crisis in periphary Europe is going to be fraught with complications, risk, moral hazard, and confusion.<\/a><\/p>\n

Who else will be bailed out? How does union credibly maintain fiscal discipline?<\/p>\n

Those are a couple of issues that scratch the surfaced.<\/p>\n

While markets are feeling good right now, nervousness could come back violently in an instant as a plan fails to go smoothly.<\/p>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n