Geithner: "Fed Audit Would Be Problematic For The Country"

[Average Joe]

http://www.zerohedge.com/article/giethner-fed-audit-would-be-problematic-country

"It is the esteemed Treasury Secretary's opinion, that anything that has to do with demystifying why the Fed is hell bent on destroying the US dollar, killing the middle class, and allowing Lloyd Blankfein to purchase Larry Ellison's yacht collection, is squarely in the "problematic for the country" camp. Never mind that more than half the country (in fact almost two-thirds) have indirectly voiced their support for HR 1207. But at least it is good to know where Geithner's allegiances lie, and even better to see how good at totally perverting facts (not just taxes) the SecTres is.

And the punchline: "The true test of the Fed is the market." Is there a way to give Mr. Geithner an economics test because it seems he might have graduated with a biz-econ degree from Devry. "

 

[swm79]

anyone catch The Wolf of Wall Street's interview???

IO: A lot of the executives responsible for some of these meltdowns in companies are still there. They’re still on the boards. They’re still getting multi-million dollar salaries. Some of the companies that were bailed out used some of the bailout money to pay their executives huge salaries. What you're saying is good in theory, but but these executives just keeping a low profile until things die down and then it’ll just be business as usual?

JB: A good question. I think that it’s very difficult to generalise, to say 'yes they will'. When you say 'they', you’re including a very large group of people.

I think it’s outlandish the fact that the US government pays money to a bank, then they start paying bonuses. That’s crazy. I mean just come on! It’s outlandish. It’s sort of a weird situation, because what happens is there’s a very fine line between the people that are in power and the people that are on Wall Street, because they’re going back and forth. You know both former treasury secretary, Wilson Paulson, was the head of Goldman Sachs. He was the CEO of Goldman Sachs, so tell me that’s not a conflict of interest when he is now the treasury secretary and he’s deciding who’s going to get money and who’s not and so on and so forth.

IO: Well, there was also criticism of Geithner because people are saying that he’s one of the boys in that group.

JB: Well, especially about Geithner – he was the guy who you could say was asleep at the switch, when all of this was happening. He was in the New York Fed when all this was going on. Yeah, obviously he’s there. I don’t want to say Geitner’s a bad guy or anything, but clearly there’s an incestuous relationship that’s been going back and forth, not just for the the last five years, but for the last hundred years where people and banking and politics go back and they leave Wall Street, they go into politics, they come out of it. Look at Richard Rubin, the guy from Citi Bank. He was the treasury secretary. He actually changed the laws to allow some of these derivatives to be held on the books of banks in much larger concentrations and with much more leverage. He did that when he was treasury secretary. Then he goes back to Citi, back to Wall Street, takes a job at Citi, he dramatically increases the amount of money they’re putting into these instruments, he makes I think $400 million when he’s there and destroys the bank and then he walks away with the money.

 

[Buckeroo]

anyone catch The Wolf of Wall Street's interview???

Well, maybe the real demise of the US will be when the insurrection begins.

History may show these business people getting bonuses as criminals eventually - using tax payers money as hand outs to the rich will anger ordinary people for a long time to come.

You can already see the US is starting to breakdown, such as the reaction to the health care changes. Its just the beginning IMO

Cheers

 

[swm79]

Well, maybe the real demise of the US will be when the insurrection begins.

History may show these business people getting bonuses as criminals eventually - using tax payers money as hand outs to the rich will anger ordinary people for a long time to come.

You can already see the US is starting to breakdown, such as the reaction to the health care changes. Its just the beginning IMO

Cheers

this stuff has been happening for YEARS tho... its not new at all... ever since the Feds inception this stuff has been going on.... and moreover, since they went off the gold standard.

people have thought for a long time that the US needed war to thrive... .actually they needed debt, and debt conversion vehicles. the more derivatives out there the thicker the smoke screen

 

[Buckeroo]

this stuff has been happening for YEARS tho... its not new at all... ever since the Feds inception this stuff has been going on.... and moreover, since they went off the gold standard.

people have thought for a long time that the US needed war to thrive... .actually they needed debt, and debt conversion vehicles. the more derivatives out there the thicker the smoke screen

Maybe so, but its fairly well in the open now and I think they have reached a point where they can't hide from their debts

....but then again I suppose apathy could take over, once people can afford to start spending again.

Cheers