national debt

Oct 24, 2009

MSNBC GETS IT: Geithner At Center of Economic Woes Before Appointment

The MSNBC talking head, Dylan Ratigan,stresses the comparison of the banks being like a casino with the banks being the high rollers who get paid off regardless.

Representative Darrell Issa (R)points out how Secretary Geithner was at the center of the abuse of credit that lead to the banking crisis. I have pointed this out often in the Yahoo Groups I participate in, but this is the first I have heard about it being pursued in Congress. From what is being said here, an investigation into whether Tim Geithner violated SEC rules is the question.

This should have been pursued before he took over as it was well known that he was lose with credit at the Federal Reserve Bank of New York. Geithner was made its president in October of 2003. Of course, we know that the Federal Reserve is the central bank of the US and a quisi-governmental entity whose governing board chairman, since February 1, 2006, is Ben S. Bernanke.

At this point, it will be difficult to proceed when the U.S. Securities and Exchange Commission is the investigative organ for this and is under the authority of President Obama.

Then President Geithner was under the authority of then Chairman Berneke when in May 2007 he worked to reduce the capital required to run a bank.

In March 2008, he arranged the rescue and sale of Bear Stearns. Geithner made both decisions to bail out AIG as well as the government decision not to save Lehman Brothers from bankruptcy.

Essentially, Secretary Geithner was both the cause of the need for bailouts and the author of those bailouts. His plan was criticized by Nobel economist Paul Krugman as well as Nobel laureate and former World Bank Chief Economist Joseph Stiglitz.

Obviously, the Nobel Committee was not the first to debase the intended value of that honor. President Obama and Secretary Geithner ignored those previously honored without much concern.

If Representative Darrell Issa can gather the investigative power to attack this issue, there actually may be change and hope for our government. That depends on the integrity of the House Committee on Oversight and Government Reform. Time will tell.

I remember in 2006 when Speaker Pelosi claimed she would get rid of the alligators of corruption by draining the swamp. Obviously, "Dollar Bill" Jefferson and "Cold Cash" Rangel are protected alligators in protected "wetlands."

Will there be a bipartisan effort to combat corruption? Or will Congress continue to subsidized it? Time will tell.

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Republican Leader of the House, John Boehner House Republican Leader and a staunch opponent of pork-barrel politics, John is fighting to eliminate wasteful spending, create jobs, and balance the federal budget without raising taxes. He has challenged Republicans in the 111th Congress to be not just the party of “opposition,” but the party of better solutions to the challenges facing the American people. Under the new House GOP leadership team John leads, House Republicans have formed “solutions groups” to develop principled alternatives on the issues that matter most to American families and small businesses, and launched the GOP State Solutions project, an initiative aimed at bringing reform-minded Republicans at the state and federal levels together to promote common-sense solutions from outside the Beltway.

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