Geithner Archive

President Obama entering the fray

More of the blind leading the blind. The one thing they all agree on, at great expense to global well being, is the budget deficits are all too large and the need for shared sacrifice and all that. No chance for anything constructive to come out of any of this. And these ...Read More

Major Banks Likely to Get Reprieve on New Capital Rules

The real problem is if you understand what a bank is, you wouldn’t be trying to use capital ratios to protect taxpayer money. First, notice that the many of the same people clamoring for higher capital ratios have also supported ‘nationalization’ of banks, which means there is no private capital. So it ...Read More

China to Let Companies Invest Overseas Using Yuan, and Geithner gets it all backwards?

China Headlines: China GDP to Grow 8.7% in 2011, Down From 10%, World Bank Says That’s a material drop that could take away some of the bid for commodities. PBOC’s Yi Says China Will Remain Long-Term Investor in Europe Yes, along with Japan now And an obvious Trojan horse, as they are ...Read More

Geithner backwards again on banks, risk, and recovery

[Skip to the end] No we don’t. We ‘get out of this’ with a fiscal adjustment sufficient to restore output and employment, and as credit worthiness improves lending picks up. Banking is necessarily pro cyclical Tim, get over it! Geithner Says Some Banks to Need ‘Large Amounts’ of Assistance by Ryan J. ...Read More

Geithner Plan

[Skip to the end] This is what happens with a government that doesn’t know how the monetary system works and thinks it needs private capital participation: Geithner Tempts Investors with Loans, 25% Returns by James Sterngold Mar 24 (Bloomberg) — The U.S. government’s plan to rid banks of toxic assets may attract ...Read More

Geithner plan: Let them clip coupons

[Skip to the end] The Geithner plan is the latest move in what is shaping up to be the largest upward distribution of real wealth in US history. Its stated purpose is to provide high enough risk adjusted returns to attract ‘private capital’ at a time where risk perceptions are elevated. This ...Read More

Fact sheet on Geithner- Obama plan

[Skip to the end] Thanks! Seems much of the latest proposal is designed to attract private capital by offering investors a sufficiently high level of profit. This directs income to those with financial capital, who now look to be the main beneficiaries of the new administration. Hard to expect otherwise from an ...Read More

Fed minutes – longish version

[Skip to the end] I cut quite a bit, but still a lot worth a quick read: In view of continuing strains in interbank and other financial markets, the Committee took up proposals to expand several of the liquidity arrangements that had been put in place in recent months. Chairman Bernanke indicated ...Read More