Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

[Charles Mackay]

Well, surprise surprise surprise... Corzine, former Goldman CEO is the favorite to continue control of the nation's treasury! LOL! :cool: :rolleyes: :cool:

Corzine began his Wall Street career in 1975, when he was recruited by the New York investment firm Goldman Sachs. After taking a job with the firm as a bond trader, he and his family settled in New Jersey. Corzine's financial acumen propelled him through the ranks at Goldman Sachs, where he was named a partner in 1980, became a key player in crucial strategic decisions, and was eventually named chairman and chief executive officer in 1994.
Corzine assumed the helm of Goldman Sachs during a troubling time, as the firm had suffered massive losses resulting from a downturn in the bond market. Through strategic initiatives that included realistic expectations, risk diversification, and a methodical approach to the future, Corzine reversed the fortunes of the firm and restored its longtime status as the leader of the investment banking industry.

[Slimprofits]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

A few names are being tossed around for Treasury: Corzine, Rubin, Summers and even Volcker.

[D-Mack]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

A few names are being tossed around for Treasury: Corzine, Rubin, Summers and even Volcker.

Mr. Rubin worked for twenty-six years at Goldman Sachs & Co., one of Wall Street’s venerable investment firms

http://www.ustreas.gov/education/his.../rerubin.shtml

Don't know much about the others

[Slimprofits]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

Don't know much about the others

A few generalties: Summers was the World Bank's chief economist, President Clinton's last Treasury secretary and the President of Harvard University.

Paul Volcker is the former Fed Chairman under Carter and Reagan that has signed on as one of Obama's economic advisors. Surely you've read about him a few times in Itulip commentaries.

[Master Shake]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

Well, surprise surprise surprise... Corzine, former Goldman CEO is the favorite to continue control of the nation's treasury! LOL! :cool: :rolleyes: :cool:

Corzine began his Wall Street career in 1975, when he was recruited by the New York investment firm Goldman Sachs. After taking a job with the firm as a bond trader, he and his family settled in New Jersey. Corzine's financial acumen propelled him through the ranks at Goldman Sachs, where he was named a partner in 1980, became a key player in crucial strategic decisions, and was eventually named chairman and chief executive officer in 1994.
Corzine assumed the helm of Goldman Sachs during a troubling time, as the firm had suffered massive losses resulting from a downturn in the bond market. Through strategic initiatives that included realistic expectations, risk diversification, and a methodical approach to the future, Corzine reversed the fortunes of the firm and restored its longtime status as the leader of the investment banking industry.

And he's going to name Chicago machine political thug Rahm Emmanuel as his Chief of Staff. So much for bipartisanship and change.

[rros]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

Well, surprise surprise surprise... Corzine, former Goldman CEO is the favorite to continue control of the nation's treasury! LOL! :cool: :rolleyes: :cool:

Corzine began his Wall Street career in 1975, when he was recruited by the New York investment firm Goldman Sachs. After taking a job with the firm as a bond trader, he and his family settled in New Jersey. Corzine's financial acumen propelled him through the ranks at Goldman Sachs, where he was named a partner in 1980, became a key player in crucial strategic decisions, and was eventually named chairman and chief executive officer in 1994.
Corzine assumed the helm of Goldman Sachs during a troubling time, as the firm had suffered massive losses resulting from a downturn in the bond market. Through strategic initiatives that included realistic expectations, risk diversification, and a methodical approach to the future, Corzine reversed the fortunes of the firm and restored its longtime status as the leader of the investment banking industry.

Wall street funded the Civil War. The government had no money and expressely reached out to the street. Uncle Sam still pays its dues. Read Clews book, direct from the source, as he was called upon and organized the committee of bankers back then.

[D-Mack]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

A few generalties: Summers was the World Bank's chief economist, President Clinton's last Treasury secretary and the President of Harvard University.

Paul Volcker is the former Fed Chairman under Carter and Reagan that has signed on as one of Obama's economic advisors. Surely you've read about him a few times in Itulip commentaries.

Volcker is infamous, but I'm not aware of any Goldman blood in both of them.

[BlackVoid]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

Just another clue / proof that the US presidential election is meaningless.

The same policies, slightly different propaganda and methods. Bad cop / good cop.

[Chomsky]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

And he's going to name Chicago machine political thug Rahm Emmanuel as his Chief of Staff. So much for bipartisanship and change.

At least this keeps Emanuel from trying to oust Howard Dean as chair of the DNC.

[Thailandnotes]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

Just another clue / proof that the US presidential election is meaningless.

Tell it to families with dead and wounded from Irag. Get spit on.
Sorry, they aren't meaningless.

[skidder]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

Lawrence Summers was co-author of a paper called "Gibson's paradox". The following is an article that ties that thesis (gold price moves inverse to interest rates) to the gold suppression by the ESF as part of Rubin's "strong dollar" policy during the Clinton administration. Obama's administration will be "same shit, different day".
I'd give the article a read as the excerpt doesn't cover all the pertinent points.

http://www.safehaven.com/article-4800.htm

excerpt:

"
Lord Keynes, in one of his more lucid moments, coined the term "Gibson's Paradox", in an attempt to explain the correlation between interest rates and the general price level observed during the years of the classical gold standard.
The reason it was a paradox is that Irving Fisher suggested that interest rates should move with the rate of change in prices, i.e., the inflation rate or expected inflation rate, rather than the price level itself.
Mr. Summer's has the following to say on the matter:

"The price level under the gold standard behaved in a fashion very similar to the way the reciprocal of the relative price of gold evolves today. Data from recent years indicate that changes in long-term real interest rates are indeed associated with movements in the relative price of gold in the opposite direction and that this effect is a dominant feature of gold price fluctuations." ^[3]

The above translates into English as meaning that gold prices move opposite (inverse) to real interest rates - in a free market that is. Although free markets are doubtful, the rest of the thesis remains plausible, at least for a while.
The Theory of Linkage
Others have done similar work. Professor Fekete has written rather extensively on the theory of linkage between the price level and the interest rate level. Fekete references the 1947 work of Gilbert E. Jackson regarding such linkage as follows:

"In 1947 the British-born Canadian economist Gilbert E. Jackson studied the behavior of just two economic indicators, that of the price level and the rate of interest. He found that the two are linked. Sometimes the price level leads and the rate of interest lags; at other times, the other way around." ^[4]

GATA'S WORK
The Gold Anti-Trust Action Committee: www.gata.org. led by Bill Murphy, has done enormous amounts of work on the Gold War, and the price manipulation scheme orchestrated by the powers that be.
With an army of dedicated freedom fighters behind him that include Reggie Howe, Frank Veneroso, and Chris Powell, GATA has turned the tide. The unparalleled interventional analysis of Michael Bolser has the Fed studying their next move in a real live game of chess.
In one of my earlier papers: Silver IS Money, Behold A Pale Horse - Part IV I showed the following chart:

Gibson's Paradox

Chart Courtesy of GoldenSextant & www.sharelynx.net

Gibson Revisited
On the chart, the 30-year U.S. Treasury bond yield minus the annualized increase in the Consumer Price Index (calculated as the sum of the monthly CPI increases for the preceding twelve months) defines real long-term interest rates.
The chart clearly shows that the inverse relationship between long term interest rates and the price of gold remained fairly intact until something funny happened around 1995, as the relationship suddenly diverged in the opposite direction of what it had been.
Interest rates and the price of gold are no longer running inverse to one another, but in the same direction - and the direction is down.
As real rates declined from 4% to 2% the price of gold droppedfrom $400 an ounce to around $270 an ounce. According to Summers and Gibson's Paradox, the price of gold should have moved in the inverse direction - or up in price. So what happened?
The Fix
From the transcript of the minutes of the Federal Open Market Committee on March 26, 1991, the following exchange took place between Fed Governor Wayne Angell and Federal Reserve Chairman Alan Greenspan.

"Chairman Greenspan: "Is there not any mechanism by which we can create swaps or RPs or something of that nature in which essentially we have fixed the exchange rate of our holdings?"
Fed Governor Wayne Angell: "You could have an exchange of puts. In effect, you could swap puts and thereby assume that somebody would ultimately want to exercise that added advantage."
Mr. Greenspan: "Well, the point at issue is that it's a [forward] exchange transaction that has a date on it. ... And effectively that gets factored into the market and neutralizes your position. What I'm thinking of -- and I just thought of it at this moment, so there might be plenty of reasons why not -- is an open-ended fixed-price mutual put, to put it in the terms that Governor Angell stipulated, so that we can eliminate part of the problem that is on the negative side of the current".
Mr. Angell: just prior to the end of the meeting said: "There's one slight addendum to this discussion: We have a reserve holding that costs us more money than what is reasonably in prospect to happen on foreign exchange rates and that is that we really are not a small reserve holding currency country.
I think we actually have official reserves of $85 billion, Sam, compared to Taiwan's $75 billion. And if you mark our gold to the $358 price, we end up with something like $170 billion. There are opportunity costs because we don't get interest on that gold as we do on our foreign exchange holdings.
That cost is out there also. I would hesitate for us to have foreign currency holdings that have swap puts that just sit there, which is now becoming the case for our gold." ^[5]

Did You Catch That?
He said, "swap puts that just sit there" on the U.S. gold reserves. Couple the above with the Fed's general counsel, J. Virgil Mattingly's 1995 statement to the FOMC:

"It's pretty clear that these ESF (exchange stabilizing fund) operations are authorized. I don't think there is a legal problem in terms of the authority. The statute [31 U.S.C. s. 5302] is very broadly worded in terms of words like 'credit' -- it has covered things like the gold swaps -- and it confers broad authority." ^[6]


Gibson's Paradox and The Gold Standard
III. Real Interest Rates and the Relative Price of Gold, 1973-84

"Figure 4 displays the inverse real gold price and our estimate of the expected pretax real interest rate. The strong co-movement over the longer cycles is reminiscent of Gibson's paradox. Variation in the real interest rate appears to be responsible for much of the year-to year movement in the relative price of gold."
After 1980, inflation exhibits increased volatility, and the ARIMA forecast is less satisfactory...Yet, the impression that real rates were high after 1981 and that these high rates were associated with a low Relative price of gold vis-à-vis the 1980 level is unmistakable." ^[7]

V. Summary and Conclusion

"The Gibson paradox has proven to be an especially stubborn puzzle in monetary economics. We believe that taking account of the role of gold as an asset contributes significantly to our understanding of the anomaly.
Our model accounts for the historical coincidence of the Gibson's paradox and the gold standard, an observation made by Friedman and Schwartz (1982) but not incorporated in previous attempts to rationalize the Gibson phenomenon." ^[8]

I Believe
Obviously, these guys believe that there is a direct association between changes in interest rates and movements in the price of gold - in the opposite direction, nonetheless.
However, our chart does not show that. It shows that such was the case up until about 1995, and then suddenly the relationship reversed.
Interest rates started coming down AND the price of gold came down as well.
Presently interest rates have been going up along with the price of gold. What gives?

[nathanhulick]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

Meet the new boss, same as the old boss.

[we_are_toast]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

Didn't you right wingers get the message on Tuesday? John McCain lost because of the negative, slanderous, Fox News, Rush Limbaugh style campaign he ran and here you are continuing with the same B.S. Instead of offering a thread that speculates on the next Treasury Sec. and discussing his/her merits, you immediately get right down there in the mud. No wonder many of the Republican intellectuals are now speaking out about how their party has become the party of Joe the Plumbers and Sarah Palins.

My guess for Treas Sec. is Timothy Geithner from the N.Y. Fed.

And look for Repubs Hagel and or Lugar to hold positions or be involved in the transition. Both are good Picks. I would like to have seen David Gergen as chief of staff.

[Hypatia1]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

And he's going to name Chicago machine political thug Rahm Emmanuel as his Chief of Staff. So much for bipartisanship and change.

Obama's made JUST ONE appointment so far, and you're already accusing the guy of not being bipartisan?
...Wow, I'm just speechless.

[due_indigence]

Re: Obama to tap Goldman CEO for Treasury Secretary...Hahahahahaha!!!!

Three of Obama's top seven corporate contributors were Wall Street investment banks. Goldman was #1.


Corzine at Treasury would confirm business-as-usual.