Economic Guru: Bad Bank Vs. Good Bank

LAS VEGAS, March 25 /PRNewswire/ — CEO Q Magazine published a special report on the US Economic Crisis. The report included an interview with Med Yones, the President of International Institute of Management (IIM) and one of the few economic gurus who predicted the current economic crisis. He challenged the US President’s State of the Union Address in January 2007, the Federal Reserve Chairman and the popular opinion of US Economists at the time.

According to Med Yones, “The Bad Bank is a bad idea. Although, the stock market will rally and the credit will start flowing again, we have to be aware that it is only a psychological trick. It is like making the rabbit disappear with a magic trick (but it is only hidden out of sight). The saying you could fool most of the people for some of the time is true here. This is not a real solution to the crisis; it is only a transfer of the bad assets from the banks to the government and the tax payers. We all have to pay the price later. Obama’s Administration or the next Administration will have to pay the price for the worthless Bad Bank assets, out of control budget deficits, bad dollar value, and even a worse economy.”

“A better solution would be a ‘Good Bank’. A government owned bank that will provide direct liquidity to the market, distressed homeowners and small businesses. The initial challenge of Timothy Geithner and Ben Bernanke would be the bureaucracy and operational efficiency of the bank, but that can be solved through private-public partnerships with the healthy banks and the new investors. The Good Bank can be for-profit and this will help reduce the budget deficit and finance national economic growth”.

To read the interview, please visit:

http://www.ceoqmagazine.com/2009Q1/economics/financialcrisis/

About IIM:

International Institute of Management is a US based best practices research and education institute. Government and business leaders leverage IIM’s think tank and consulting services to help them solve complex business problems in a rapidly changing environment.

About CEO Q Magazine:

CEO Q is a quarterly CEO Magazine addressing emerging business challenges and opportunities. The magazine publishes the works of leading management experts in a format targeting Global Fortune 1000 CEOs and their executive teams.

Media Questions:

Expert profile: http://www.medyones.com

CONTACT: Julia Grobecker of IIM, +1-702-696-8003, media2@iim-edu.org

SOURCE CEO Q Magazine