Further Proof that Tim Geithner Thinks We Are Total Idiots
Oh Timmy, when will you learn? We aren't buying it. We never bought it but we really don't buy it now, and you can waste all your big words on trying to convince us otherwise but odds are on no one buying it for as long as you are running the show at the Treasury.
U.S. Treasury Secretary Timothy Geithner said the Obama administration wouldn't allow Wall Street to return to such old habits as taking on excessive risk, and that plans to overhaul financial-market regulation were on track.
Mr. Geithner pushed back against criticism that Wall Street, which is returning to profitability, is also returning to business as usual, in an interview with The Wall Street Journal.
"I don't think the financial system is reverting to past practice, and we won't let that happen," Mr. Geithner said. "The big banks are running with much less leverage now, much more conservative liquidity cushions, there's been a significant shrinking of their balance sheets, getting rid of bad assets and cleaning up. And the weakest parts of the system don't exist anymore."
Wait for it, here comes the hilarious part. Ready?
Some banks, including those that received government bailout money, are earning record profits, increasing pay and ramping up risk. Goldman Sachs Group Inc., for instance, recently recorded its most profitable quarter ever and boosted its degree of risk-taking as measured by how much money it could lose in a single day.
Mr. Geithner said a functioning and profitable financial system was a "necessary precondition to a stronger economy."
"The consequence of achieving stability is that people can raise money, can raise equity, can borrow more easily at lower rates, that these markets have liquidity again," Mr. Geithner said. "The fact that the core parts of the U.S. financial system look like they're profitable is overwhelmingly good."
Run that by me one more time, Timmy, I may have read it wrong.
"The fact that the core parts of the U.S. financial system look like they're profitable is overwhelmingly good."
Translation? I am reluctant to admit this but I speak Timmy (hey, he's an ex Fed boy and we all know I'm fluent in Fedspeak, right?) and am happy to decode his thoughts for you.
"I can't believe you idiots are falling for this recovery crap. Worse, Goldman Sachs and JP Morgan just bent you over and tapped that taxpayer ass to reap obscene profits. But since I'm telling you this is a vital component to this fake recovery, you have no choice but to sit there and take it. LOLZ!"
This is like the cat telling you the canary escaped while the owners were out of town with feathers flying from his mouth.