Thursday, January 7, 2010

Enough Is Enough: Time To Fire Geithner

Geithner is a true scumbag and that should have been quite apparent in the way that he released the news that the Treasury was removing the bailout limitations on FNM and FRE on Chrstmas Eve, when no one was around to see the news as it hit the wires.  It was also done strategically like this in order to avoid the Congressional approval that would have been required had the decision been implemented just 8 days later in the new year.  But Geithner should have never been given the job of Treasury Secretary in the first place after it was revealed he was a habitual tax cheater.  Shame on Obama for not withdrawing his nomination of Geithner and shame on Congress for confirming the appointment.

NOW it appears as if Tim Geithner intentionally told AIG to violate SEC laws by instructing them, as then-Chairman of the NY Fed, to withhold information from the public about the details of the close to $200 billion taxpayer bailout of AIG.  From Bloomberg News:
The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show (Here's the link:   Time To Dump Geithner)
We already know that Geithner paid out 100 cents on the dollar, using Taxpayer money, to the banks involved, knowing full well that market value was, at most, 30-40 cents on the dollar and likely a lot less.  But even more stunning is the email evidence showing that Geithner instructed AIG to hide these fetails from public - details which AIG was going to originally disclose:
AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008.
Enough is enough, Barack.  Time to start cleaning up your first-year catastrophe and try to start doing the right thing for the people who gave you the benefit of huge doubt and voted for your platform of change and reform.  As it stands now, the only difference between Obama and his predecessor is that Bush never made any attempt to lie about the fact that he was going to screw the Taxpayer for the benefit of Big Corporate America.

Geithner should be terminated immediately and investigated for tax fraud and violating SEC laws.  The evidence is clear and unambiguous.  This should also lead to a full investigation of Geithner's background.  It's probably too late for Obama to save his chances of being re-elected, but at least he can start laying the groundwork for the future of this country by upholding his campaign platform promises and embarking on real Change and reform.


  1. Dave, It's time to flush both political parties, but by all means lets take care of Tiny Turbo Tim right now. It's the least we can do.

  2. this country has become a politburo of sorts in which it's the Govt vs. the taxpayers (welfare guys are on the side of Govt cuz the Govt supports them and they dont pay taxes).

    Will someone please exlpain to me the differences between Bush and Obama, because I don't see any.

  3. Dave,
    Geithner was protecting the national security of the US, so by extension, he was fighting terror, by covering up the AIG payouts. Where is your patriotism?

    On a more serious note, by admission that the whole insurnace layered protection ring would have blown up, how is this not clear evidence that these instruments serve no purpose, other than to generate fees? We need an answer to that query.

  4. I have read credible accounts that Goldman would have blown up if AIG hadn't been given the funds to pay 100 cents on the CDS.In fact, in his book, Andrew Sorkin writes that someone in the meeting with Paulson recounts that Pauldon went into the bathroom and threw up when he was told about the whole situation.

    Geithner should really be under serious inestigation for his role.

  5. There are at least 5 things from the last 2 years that happened in the US that would be looked at as proof a country was corrupt and a banana republic if it was any other nation. Gotta love the free pass.

  6. Actually JW, China has its own substantially nuclear arsenal and is considered to have, in some areas, superior military to the U.S. The Chinese silkworm missiles defending Iran are said to be the reason Bush did not attack Iran when he had a window to do so.

    China is the largest producer of gold now and they have a large amount of oil, silver, rare earth metals etc. A company I own, Silver Dragon, SDRG, is 40% owner of a property in China, with Shengda (one of the biggest mining concerns in China) as developing partner, that they think may be the largest silver deposit in China.

    I'm not suggesting the U.S would ever attack China, I'm saying the only strategic hegemonic calling card the U.S. has left is its military power, which is rapidly depleting in the ME and Afghanistan.

    2010 is going to be a very very ugly year for this country.

  7. China is taking the Sun Tzu approach as they will topple the US without firing a shot. Once they pull the plug on the USD, the US military will dry up and blow away without funding.

    Joe M.