Geithner picked for Treasury

[*T*]

Re: Geithner picked for Treasury

He has, at least, advocated a CDS clearinghouse in the past. That should count in his favour and indicates he has an inkling about risk.

[bpr]

Re: Geithner picked for Treasury

Im alarmed that the Economist thinks continuity and involvement in the crisis for one years is a good thing. Seeing how Bernanke and Co. have handled things...

Treasury has unprecedented power and control right now. Someone who's been there, working hand in hand with them for six months provides competence and accountability — a link to the current administration.

Competence in the sense that, if anyone understands the bailout, which has been done behind closed doors and with confidential memos, it's Geithner. The one day of Congressional hearings I saw him at he looked better than both Bernanke (who looked nervous) and Paulson (terrified).

Bringing in Volcker (or any bailout "outsider") at this point would be catastrophic. The minute they figured out how this bailout has been orchestrated they'd bring it to an end and the markets would tank (the bottom, if you haven't heard, is zero).

I say let Geithner try and fail (or, miraculously, succeed), then run him out of office after six months of excruciating testimony.

[godraz]

Re: Geithner picked for Treasury

He has, at least, advocated a CDS clearinghouse in the past. That should count in his favour and indicates he has an inkling about risk.

So long as the clearinghouse is fully transparent and honest about the values involved (mostly zilch), and the holders take their losses (even if it means bankruptcy), and not one of further smoke and mirrors while passing along this toxic risk onto our backs to shoulder.

That would be a change for the better, but we'll see whether Geithner and the rest of Obama's team and their plan cares about this as it relates to repairing our larger economic interests or Wall Street's.

[friendly_jacek]

Re: Geithner picked for Treasury

Geithner = 500 points on the DOW - Monday we get to meet the whole team. Could be a big up week in the markets on lite trading jmho

I noticed that too, and wondered it this was a signal that banks approved the choice. It also makes me wander if Obama was somehow forced to make his choices. After all, the recent behavior of Paulson could be credited for the heavy selling lately.

[bill]

Re: Geithner picked for Treasury

He can manage these new licensed sharks liquidation process.
http://www.bloomberg.com/apps/news?p...atY&refer=home

http://www.occ.treas.gov/ftp/release/2008-137.htm

http://www.bloomberg.com/apps/news?p...rLg&refer=home

KKR’s Kravis Says Government Financial Assets an Opportunity

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By Simon Clark and Jann Bettinga
Feb. 3 (Bloomberg) -- KKR & Co. co-founder Henry Kravis said private equity firms should target distressed financial assets assumed by the U.S. government after President Barack Obama’s administration pledged to sell them.
Kravis, a takeover veteran who started KKR in 1976, cited a Jan. 12 letter to congressional leaders from Lawrence Summers, head of Obama’s National Economic Council, as evidence the President would quickly re-sell any assets bought by the government. Summers wrote that the government would replace its investment with private money “as quickly as possible.”
“This stated intent of the Obama administration matches up very well with all of us,” Kravis told executives at the Super Return private equity conference in Berlin today. “There is over $400 billion of committed capital to the private equity industry sitting on the sidelines and some of that will certainly be put to work.”

[bill]

Re: Geithner picked for Treasury

Over the next 6-9+- ?mths will be massive liquidation of banks and from this process will arise cleaned bank machinery ready to stimulate.

Liquidation talk
http://www.bloomberg.com/apps/news?p...0M0&refer=home

Stimulate talk

Last year Bankers unloaded toxic assets onto the public utilizing funds making big profits from the first bounce.
I guess that was a dose of liquidity for bankers to get well knowing public fund playing was coming to an end.

Easy to change the rules as big banks look like insider money making villains, yet gov. supported it with check book in hand.
Big banks are the target and main street will support such government policy.

Obama administration will run high deficits and ramp up liquidity justifying this time its for the people.
“We did it wrong the first time now its for you the people.”
People are desperate for a job, even if it means higher deficits and taxes they will go along if convinced it will create jobs.
Projects never conceived to be accepted by the public will now be begged for just to get a job. Crowd noise level is exactly where progress begins, its back to work paying down debt taking jobs you never dreamed of accepting before.
The18 member panel for deficit studying Obama is proposing will not report until after the Nov. elections.
By then they should have a good Idea how much of an increase in taxes you should pay for this years spending.

http://www.nytimes.com/2010/01/24/us...cs/24debt.html