Geithner rescue package ‘robbery of the American people’

The US government plan to free beleaguered banks of up to $1 trillion (£690bn) of toxic assets will expose American taxpayers to too much risk, leading economist Joseph Stiglitz has cautioned.

The Nobel Prize-winning economist, speaking a day after the Dow Jones Industrial Average rose by almost 7pc in support of the novel public-private partnership (PPIP), said that the plan is “very flawed” and “amounts to robbery of the American people.”

Professor Stiglitz on Tuesday led a list of well-known economists and high-profile industry figures who have said Treasury Secretary Tim Geithner’s toxic asset plan may not be as successful as it first seems.

Based on the record, why should anything BUT this be expected?