Wednesday, February 4, 2009

Congressional Comics

"As Mike O'Rourke, strategist at broker BTIG, remarked with a dismissive tone: 'Congress allowed [Tim Geithner] to shell out $30 billion with questionable legal authority for the Bear Stearns acquisition and now they are complaining about $30,000", Michael Santoli at Barron's, 19 January 2009.

"It now falls to Geithner to lead the way out of this mess. ... Colleagues say Geithner privately acknowledges that the U.S. economy is still sinking fast and the root cause of the problem--the housing bust and ensuing credit crunch--is still very much with the nation", my emphasis, Bill Powell at Time, 26 January 2009.

I agree with O'Rourke. I opposed Geithner's appointment as SecTreas, but his not paying $34,000 isn't why. That this miniscule item arose in the Congressional hearings shows Congress lack of perspective on its duties. Congress can look into steroid use in baseball, but doesn't supervise the SEC. What a joke. If Uncle Sam needs $34,000, let him ask Lloyd Blankfein for it. I'm sure Goldman Sachs (GSG) has $34,000. Didn't GSG get $10 billion in bailout money in December? It must have $34,000 left.

Privately? Why listen to anything Geithner says?

2 comments:

Junior said...

What I wouldn't give to be a fly on the wall in Geithner's office.

His dry cleaning bill has to be through the roof - there's no possible way he's just standing around looking authoritative and not pissing himself out of fear.

Anonymous said...

I see Geithner as the ultimate fixed income tool...

Those masters of the universe were always so cool when the universe moved with the model...

But when everything starts blowing up they panic... and now he panics more and more cause the Federal Reserve balance sheet is a hill of cr4pola...

And the plan to guarantee banks toxic assets will soon get torn to shreds... it's the lamest foil on a weak strategy of trying to protect the primary dealers... it's all corrupt... and soon they all fall down.

How rich is Goldman wanting to pay back TARP funds now that paycaps arrived? Hardyharhar... Lloyd... I guess Masters of the Universe can't work for a mere $500K ... no Lloyd I think you should PAY for the privilege of trying to right your firm and be banned from contact with Treasury or Fed officials...you and Mr. Mack +++ other "management types"...