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.

WSJ:

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.

Rawrrrr, Timmy!

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

13 comments:

Mantis said...

Excellent translation of Fedspeak! I am impressed.

Tony said...

It's all a confidence game, and it seems confidence is building. The first phase is to get some belief that things are improving, then risk capital will flow.

GS and JPM did have profits-- okay, they were from trading, but still, they HAD profits.

Confidence. Now we have to see if it continues and investors buy it, but so far they seem to be.

Tony,

You're absolutely right but it doesn't hurt to call them out for this bullshit behavior anyway.

"Confidence"? what a joke.

Besides, if that's their goal, why are they using Geithy? Don't they know by now that markets hate him??

Tony said...

You may have a point on Geithner being disliked by the markets...

...but if there is one thing I've learned about the capital markets as an observer (I'm not in affiliated with the industry in any way), it's that the whole operation is a confidence game, from the "financial advisors" at HR Block to the CEO of JPM.

You can call bullshit if you want, but that's like criticizing your car mechanic for having dirty fingernails.

Tony,

Call me a free market nutjob but I believe that the market will purge the infection despite the attempt to convince us that everything is fabulous.

This "confidence game" crap works under normal circumstances but these are - as I am sure you are more than aware - not normal circumstances.

The markets have spoken and will have the last word.

And Timmy is still an asshat.

Just my humble opinion. Investors buy it? You sure about that? It "appears" as though investors buy it. I don't believe for a second that they do. Capital markets are disjointed and will continue to be for quite some time.

That's what happens when you have federal funny money playing investor while the real investors are cowering in the corner clinging to their ever-depreciating loot.

Anonymous said...

The media are treating us like idiots too. Headline from this morning's Merc -

"Despite Cash for Clunkers, retail sales dip unexpectedly; jobless claims rise"

Which presupposes -
1.) A 1 billion dollar handout will fix all ills in the munchkin economy.
2.) Sales only are expected to go up.

To quote a fellow canuckistani -

"There is really no positive spin to put on these numbers,"
says Jennifer Lee of BMO group.

(research always available here
for free -- http://www.bmonesbittburns.com/economics/)

So not only is this whole mirage a crock, it isn't even a well constructed mirage, they just slap together whatever they want to see and we're supposed to see it too...

Anon,

Exactly. It's offensive.

Then again, look around you.

The CA budget crisis was a perfect example of the disconnect between reality and the sheep. Riots? Panic? NO WAY! We all went about our lives as if nothing was wrong.

It is much easier for ignorant, oblivious people to receive their reality in easy-to-swallow doses from the media, they actually *prefer* it that way.

If they didn't, Cramer would be kicked off TV, Geithner would be kicked out of office, and the Federal Reserve Act of 1913 would have been shredded long ago.

It is easier to pretend like everything is ok, I guess. But as I told Tony, that may have worked in the past but isn't going to fly anymore.

What do you think the FDIC is going to do now that it's broke?

Oh and thanks for the link. LOVE ME SOME RESEARCH, woooooo!!

Jr

Robert said...

Tap that taxpayer ass? Classic...I love it! Great work.

Robert
Accountingnation.com

Thanks, Robert! BTW I sent you an email the other day, did you happen to get it? I want to talk to you about some mega-awesome secret squirrel stuff that you would be perfect for if you're interested. If you didn't get it, shoot me a note please?

And yeah, I thought "tap that taxpayer ass" was slightly more appropriate than "full on financial assrape".

They are pretty interchangeable these days. =/

Jr

Robert said...

I didn't get it??? Send it to support@accountingnation.com and I'll take a look. When you send the email let me know where you sent it previously so that I can make sure there isn't a problem. Thanks!

Robert,

Thank goodness. Because otherwise I was going to have to get pissed off at you for ignoring my emails ;)

Will send it over in a bit.

Robert, I sent from my work email about 20 mins ago. Let me know if that doesn't work (everyone thinks we're spam - how DARE they!) and I'll try from my gmail...

or just send me a hi to jrdeputyaccountant@gmail.com

Anonymous said...

The boss left this memo on my desk:
>What do you think the FDIC is going to do now that it's broke?<

Print. Monetise. Helicopter Drop.

It's the only actions left when your
contingent liabilities are 1.4x annual world GDP and you are only 22% of that figure.

Does it really matter if FDIC is broke? They'll just reshuffle stim-uless money and your roads won't get repaired. But your deposits will be safe.

Next Up: Another 'flight to safety' into US Treasuries.

WHY???

How else you gonna fund those bond auctions.