Monday, April 20, 2009

Geithner's "stress tests" further demonstrate his arrogance

Bloomberg News' Timothy R. Homan and Robert Schmidt are reporting on the political reality in Washington - People are angry about the bailouts and they're telling members of Congress No More! But the really interesting part of the article for me was a bit further into it. It shows that President Obama's Fiscal Guru, Taxman Tim Geithner, can be as arrogant as he wants in thinking that he - a card-carrying member of America's Political Class - is smarter than the rest of America. But time and again, he proves that Joe Sixpack's common sense is more valuable than Geithner's "intellectual heft."

Bloomberg reports on the Catch-22 facing Geithner's "stress tests" of banks:

The disarray highlights what threatens to be a lose-lose situation for Treasury Secretary Timothy Geithner: If all the banks pass, the tests’ credibility will be questioned, and if some banks get failing grades and are forced to accept more government capital and oversight, they may be punished by investors and customers.

“There are plenty of ways to go wrong here,” said Wayne Abernathy, executive vice president of the American Bankers Association in Washington. “It might have sounded good at the time, but now looking back, it has far more risk than benefit.”

My advice to Tim Geithner... just because President Obama placed his faith in you doesn't mean you know everything. Stop trying to please your friends in America's Political Class and start working on behalf of America's Middle Class.

Tim White

1 comment:

Anonymous said...

Larry Kudlow tonight says the Geithner is working on "backdoor nationalization" of the 19 largest banks.

I think I'd rather see capitalists fail than socialists succeed