Tim Geithner Still Has Cooties *and* Admits Epic Fed Failure
pic credit: Godzcoffin via deviantArt
It is not like Tim Geithner to admit any wrongdoing, that's just not how he gets down. Instead, he squints hard, rolls his eyes, pulls out Lie #6252 from his little pea brain, and continues along his diabolical little path of bumbling stupidity. Seriously, putting Geithner in place to advance whatever idiotic agenda the powers-that-be were attempting to accomplish merely shows how completely clueless they are when it comes to masterminding some subversive shit. Get with the program, asshats, your methods are painfully transparent thanks to Timmy boy's unavoidable idiocy.
Anyway. That rat bastard aside (ht reader MS for coining that term), some great thought-provoking commentary via American Thinker. With a title like Geithner's Radioactive Record at the Fed, you really can't lose:
Last week, Treasury Secretary Tim Geithner admitted the Fed failed miserably during his tenure as New York Fed president, and contributed mightily to the financial calamity the world is digging out from under. Geithner conceded massive policy errors in the U.S. and at central banks throughout the world. To sum it up, Geithner confessed that worldwide monetary policy was too loose too long creating a huge bubble in asset prices. Basically, there was too much money chasing investments. Like flood waters, money seeks ever higher returns, pushing prices of real estate and commodities at rates exceeding 15% annually in 2004 and 2005.
Residential real estate underpins the economy. It is the hard collateral that secures the world's financial system. Incredibly, no objections were raised to Geithner's confirmation based on his abject failure as New York Fed president. Instead, he was confirmed mostly along party lines in January 2009. The Washington liberal establishment insisted Geithner was indispensable in handling the financial fiasco.
Now Geithner has admitted responsibility for grave policy errors that are arguably the single largest contributor to the world-wide recession. Geithner, along with current and former Fed Chairmen, Ben Bernanke and Alan Greenspan, are probably the most culpable actors in this crisis. Given the vast resources at their disposal, there is simply no excuse for it. They ought to be politically radioactive. [my emphasis]
The Federal Reserve Banks employ armies of analysts and economists. They monitor the economy by tracking money flowing through member banks as well as data from other central banks, agencies, and regulators. This data is then packaged and presented to the money policy makers on the Federal Open Market Committee ("FOMC") that includes first among equals, the Fed Chairman and the New York Fed President. Based on these reports they loosen and tighten the money supply using the "Fed Funds rate", raising rates to tighten and lowering rates to loosen.
In 2003, the FOMC set the Fed Funds rate at 1%, an historic low and an anomaly not seen since the 90s when Japanese central bank set the stage for the "lost decade" miring Japan in a near 10 year recession.
We are referring of course to the same FOMC at which Geithner had a vote for the duration of his NY Fed tenure, since, you know, New York is exponentially more powerful than those other regional bitches in case you didn't get that little memo. Why does NY have two representatives on the FOMC at all times? Because they are fucking evil, that's why!
No really, it's because Goldman Sachs is a really, really big bank, that's why.
Who cares, that isn't important.
I'm incredibly relieved that those armies of Fed analysts and economists were able to see how obviously stupid the Fed's monetary policy was in the years leading up to this mess, and that Tim Geithner may actually have a conscience after all.
Someone needs to scare the poisonous spiders out from the dank cave they're hiding out in. Their toxicity is really starting to get me down.