DealZone

Geithner vs. the nature of things

March 26, 2009

USA/A casual glance at financial markets circa, say, 2005, finds smart money scooting around regulators (the SEC, the IRS, etc) to swim in black pools, park itself in off-shore tax havens and invest in assets so hot they would become radioactively toxic in just a few months. Market professionals were paid a pretty penny, and in many cases worked very hard, to perform feats of financial wizardry that would keep the smart money where it belonged – out of sight.

Here we are in 2009 and Treasury Secretary Timothy Geithner is preparing to lobby Congress for a huge boost to the regulatory arsenal that the government can wield in its herculean effort to contain the natural inclination of money to find a way around the rules. Mobs are scouring Connecticut looking to shame the money magi of yesteryear into returning their earnings. America is wracked with fear. Talk of government-ensured employment is burbling around Washington, and bonuses are a bad thing.

Prognosticate yourself forward a few years … how many is anybody’s guess. Financial wizards likely will be wielding even more complex instruments to wend their way through the gaps and inefficiencies of a reinvigorated regulatory framework — and commanding more exotic fees. After all, this is America. We reward innovation.

Deals of the Day:

* Japan’s Mitsubishi UFJ Financial Group and investment bank Morgan Stanley will merge their Japanese brokerage units to chase industry leaders Nomura Holdings and Daiwa Securities Group. MUFG will take a 60 percent stake in the venture, to be formed by March 2010, the two banks said.

* Intel Corp Chief Executive Paul Otellini said IBM’s discussions to acquire Sun Microsystems Inc are likely to succeed for one ringing reason: Money Talks.

* Corriente Resources Inc is near closing a sale deal with China’s Tongling Nonferrous Metals, senior Ecuadorean officials with direct knowledge of the negotiations told Reuters.

(PHOTO: U.S. Treasury Secretary Timothy Geithner is seen speaking on a television monitor in the overflow room of the Council on Foreign Relations in New York, March 25, 2009.   REUTERS/Shannon Stapleton)

Comments
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I think a better statement might have been that America has in the past rewarded innovation Franklin, Carnegie, Rockefeller, Melon, Vanderbuilt, Morgan, Gates, Getty, Buffet, Brin, Jobs and Edison. Every one of them Advanced this Country.

That is why they Get Billions and Billions of Dollars because they [Make YOUR Life Better] and improve American’s Standard of Living.

However the demand for FEES with regard to Banks has weakened our principal to rewarding the innovator and providing excessive rewards to those who fund them. I think all the Junk Securities Innovation has arguably not improved any American’s Standard of Living and that the primary purpose of that Financial Innovation was to Generate Fees from Nothing as alternate to the Hard Way of supporting the next EDISON, Jobs or Gates.

In my experience those who fund innovation have put themselves in a tower above the innovator with the ever present ‘master of the universe’ personna that has now replaced our Edisons with a bunch of junky but innovative securities.

I have no problem with anyone on Wall Street making unlimited Wealth in America.

I’d like to believe My Country still rewards innovation but I’ve become a cardholding member of the state of Missouri.

You have to Show Me.

As an innovator I’ve spent the last three years living out of my trunk, when I should have been playing tennis in a living room, while certain of my innovations bought tennis rooms for people who quite simply – didn’t think it up.

And while they played Tennis in their Living Rooms, I was left on a diet of despair. Not one of the ‘masters of the universe’ ever wrote me a check.

NOT A ONE.

But I’m an American, I believe in my Country, It’s Purposes and its Principles. That thow Wall Street has enjoyed playing with a Stacked Deck, the cards have now been Reshuffled and favor American’s with Dreams, Ideas and Products that make Life in America – Better and Obtainable by All who put forth the effort, not an elite group of bankers who slice the pie and forget the biggest piece that belongs to the GENIUS OF INVENTION.

I like the saying of Ayrton Senna,

Let’s Give Everyone a Chance.

Maybe this crisis has woke us up to return to American Principles of Building Fortunes by improving the quality of life which is not measured in a traders ticks and tacks. I think the best measure of innovation is in Disney’s Wheel of Progress and how the American Family is living.

Right now, the Living is Hard.

I’d like to move out of the trunk of my car but some people seem to find it in their best interests to prolong my stay there. That’s Un-American.

 

Tim Geithner is a power hungry, egocentric a****** and wants complete control without oversight, transparency, or outside review of his program (“trust me”). This might be marginally acceptable if he were to have a history of great achievments, but he doesn’t. He may well be an adapt politicain, but give me a list of his very impressive past technical accomplishments.

Tim has a myopic view of the vastness, complexity, and interactive nature of the financial system. He sees the system as does an accountant, and believes that if he could just restore all accounts to their pre-crisis status, everything would be just hunky-dory. But it wouldn’t be. As an example, why would a CEO take the risk of using government money to give large bonuses to his staff. It was probably because he realized that he organization was in a shambles, and he was trying to buy the loyalty of his subordinates.

Remember this–Tim’s battle cry has been “Cash For Trash” (where “Cash” is taxpayer’s money). This is certainly not the way to go (i.e. Putting Tim in charge of the spending vast, trillion dollar amounts taxpayer’s money). He wants to control the economic world, but who is going to control him? Certainly not our esteemed spend-happy and prodigal president whose favorite passtime is preaching to us and other nations about his parsimonious plans.

 

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