Comments on: Geithner of Oz Now raising intellectual capital Sun, 08 Nov 2015 08:31:30 +0000 hourly 1 By: Fidel Tue, 18 Aug 2009 01:46:41 +0000 Very well put “Shah”. I think it was Fran Liebowitz who said that Americans now equate “thinking” with “wishing” as in: “I wish Timothy Geithner would do the following things; he is not doing them; therefore my rational conclusion is that he is incompetent”.

This is not even syllogism – it is utter fantasy and it is what passes for thought and critique (cf. the Health Care Plan “debate” – heaven help us). Perhaps it’s the idea of roaming gangs with tea bags pinned on their sleeves and “lists” of evil doing bankers that gets the media pundits a little bit overwrought and misguided about how bad things are and whose fault it is.
Does the population and the pundits of one of the most advanced countries in the world think “bank regulatory reform” in the current globally interconnected, computer-enhanced era of massive liquidity pools is something done in a spirit of revenge?

And revenge for what exactly? There’s not many innocent parties in this story including the “poor” and “middle class” who maxed out their HELOCs on hugely inflated real estate assets while saving less that zero for a rainy day. Kudos to Obama for sticking thoughtful people of good character and large brains into the breach.

By: the Shah Sat, 15 Aug 2009 13:20:38 +0000 There can never be any real reform in America for exactly this reason: reform takes time and Americans are totally impatient. The guy has been in office six months and the economy has gone from staring down depression to moderately upbeat, though still scaled back from inflated bubble-highs. And I think that that’s the biggest thing that people don’t get – Americans think recovery will come when they re-attain bubble-inflated highs. But how does one get to those levels without another bubble? Is that what you really want? Stop listening to Neo-Con talking points and sound bites and realize – I mean really know! – that it can’t go back to the way it was. Period. Full stop. Then take a deep breath, wait another six months, and re-evalute.

By: Haha Sat, 15 Aug 2009 08:05:00 +0000 The Lion thought it might be as well to frighten the Wizard, so he gave a large, loud roar, which was so fierce and dreadful that Toto jumped away from him in alarm and tipped over the screen that stood in a corner.

As it fell with a crash they looked that way, and the next moment all of them were filled with wonder. For they saw, standing in just the spot the screen had hidden, a little man, with a bald head and a wrinkled face, who seemed to be as much surprised as they.

By: Atomik The Weasel Sat, 15 Aug 2009 02:21:05 +0000 Geithner’s performance has been shall we say less than stellar. I see the far greater problem, however, as being the fact that Obama has chosen to follow the advice of Summers rather than wiser council. Summers track record is, of course, objectively terrible. Nonetheless, he is impressed with his own ‘intelligence’ and seems to have the same effect on others. No need for a man behind the curtain in his case.

Paulson took the lead on this fiasco, and Summers has extended the same perspective. The problem is the obvious irony that they have been too ‘successful’ and thus the financial interests have instantly reverted to previous modes of operation.

As very very little has been accomplished other than to throw piles of debt in the financiers direction it is highly probable that the bill will yet come due, that it will be very large, and that it will be devastating. Whether it will emerge in acute or chronic form is another question.

Either way, the US is in dysfunctional navel-gazing fractious decline, and China in the clear ascendancy.

Such is the way of the world.

‘Say “Good night”, Gracie.’

By: Steve Numero Uno Fri, 14 Aug 2009 20:32:36 +0000 Tim Geithner was head of the NY Fed in the years when the regulators massively failed to regulate, so he has plenty to answer for. In a bit more than one year there will be an election for the House of Representatives and one-third of the Senate. The voters will then speak again, including the furious poor and middle class voters who have been and will continue to pay for this mess.

By: Peter Fri, 14 Aug 2009 17:03:49 +0000 Game Over ?

They have until October.

Politics always trumps Free Markets and it’s all calculated!

If this fiasco hasn’t turned-around by then, the O-Team will send in “The Cleaner” and the Election Cycle will rein.

– misallocated Capital encouraged overcapacity and the Social Contract with Labor is null & void
– End of ’09, Bargaining & Hope is lost and Anger causes heads to roll (i.e., B.B., L.S. and T.G. are out as the nation moves closer to socialism)
– 2010 will bring Depression and will end with Acceptance
– 2011 re-election campaign kicks in with promises to Labor of a “Road to Recovery”
– 2012 Capital gets the backseat, Labor is in the driver’s seat. O-Team is re-elected with a majority in the House

The fate of capitalism as we know it, will forever have changed!

Election Cycles:
…note election year Novembers, the February following election year Novembers has been an excellent indicator as to whether the election year November would mark[s] an important top. In every case since at least 1968, when February following election year November moves to a higher high than the January following election year November, the market has proceeded to do very well.

Conversely, when the post-election year February is unable to move higher than the post-election year January, a significant market decline has always followed. This may be coincidence but it has proved prescient for at least the past 40 years.

By: Judith Fri, 14 Aug 2009 15:36:23 +0000 Mr. Geithner can’t please everyone. He is walking a thin line and trying to reform a system that really doesn’t want to be reformed. His cautious words may bother some of us but it demonstrates his diplomatic approach. This in the end will work becasue even if we do not like to admit it there needs to be buy in on the reforms from those that are being regulated or the reforms will fail.

I do not think he lives in the Land of Oz. I have heard nothing but well balanced diplomatic comments and an honest desire to make the needed changes. However, smashing the bankers as it seems many of us and those in the administration would like to do might give us solace and even comfort for a while, however, after a while there will be other problems that will be worse.

I beleive that Mr. Geithner’s balanced approach is what is needed i an administration that has many that want to be much too tough. The velvet golve eventually works better than the sledge hammer.

By: David Bernier Fri, 14 Aug 2009 15:28:18 +0000 I can’t imagine Geithner being in a position to please everyone, what with the big difference of views on the crisis, the bailouts, between Wall Street investment bankers and ordinary American citizens. The other day I read an article in “New York Magazine”, I think it was, where the writer went around New York City talking to bankers who thought for example that press coverage was unfair to them. Perhaps it’s really true that Wall Street is a world unto itself.