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Friday, October 9, 2009

Healthy Banks Could Assume a Bailout Role

It would be funny if it weren't so tragic.

Because Sheila Bair and Timothy Geithner are acting like spoiled kindergarten kids, the Federal government has to borrow from banks at an expensive rate of interest rather than from the Treasury (Healthy Banks Could Assume a Bailout Role, New York Times, September 21, 2009: A1, 14).

When I was in graduate school over 40 years ago, one of my mentors, Chris Argyris, used to research interpersonal competence. It is a pity that the lessons learned have not survived those forty years. Bair and Geithner sure need training in that domain. The costs would be minuscule compared to the increased interest costs due to bank borrowing.

Sent to New York Times

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