Crooks and Liars:
This Bill Moyers interview is going viral so fast, I can't even keep up with it. And for a very good reason - former S&L regulator Bill Black explains exactly why the current banking bailout is a mistake. There's so much information, you simply have to read or watch the entire thing:
BILL MOYERS: Yeah. Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover-up to keep us from knowing what went wrong?
WILLIAM K. BLACK: Absolutely.
BILL MOYERS: You are.
WILLIAM K. BLACK: Absolutely, because they are scared to death. All right? They're scared to death of a collapse. They're afraid that if they admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we'll run screaming to the exits. And we won't rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it's foolishness. All right? Now, it may be worse than that. You can impute more cynical motives. But I think they are sincerely just panicked about, "We just can't let the big banks fail." That's wrong.
BILL MOYERS: But what might happen, at this point, if in fact they keep from us the true health of the banks?
WILLIAM K. BLACK: Well, then the banks will, as they did in Japan, either stay enormously weak, or Treasury will be forced to increasingly absurd giveaways of taxpayer money. We've seen how horrific AIG -- and remember, they kept secrets from everyone.
What Mr. Black has left out is that Geithner inherit Hank Paulson's financial crisis. And the decision maker of the TARP money was Paulson and not Geithner since Geithner was the NY Fed President. Also, there is no mention of how Madoff scandal went back as far as the 80's which is during Reagan/Bush I era. No mention about the Charles Keating S&L loan scandal. This seem more to confuse the public. He needs to do less discussion and more of showing concrete proof behind this theory.
3 comments:
Yes William Black woeked on the Savings and Loan Scandal and didn't get his come upins for it afterwards. What Mr. Black forgot is the Savings and Loan wasn't Global in the 80's early 90's. Yes Mr. Black saw John McCain as quilty as sin walk away and continue his career. Black's name is always on the list but never picked. Then come Tim Geithner and Black's out again. Your right SPB as the Hankester was in charge but one might think if Mr. Black has the USA's interest he would have contacted President Obama and not used the PBS show to smear the Administration. What some people will do when he feel they have been left behind. Now I wonder when Tim's plan for recovery works what will Mr. Black be saying then? Will he be like Paul Krugman and lose his creditablity in the field of Economics or will he just lie and say he knew it all along. I'll leave that answer to the wise and soft Mr. Kitty Bowtie.
It had better work...but Geithner's look with lack of confidence makes me have a lack of confidence in his ability. And why didn't Geithner do a better job as prez of Fed reserve?
Is he saying he didn't see this coming??
That's why Geithner and the Obama Administration set up the financialstability.gov which provide transparency of the who is getting bailout and the banks' accountability displayed on the site. I go on the site daily to see any new updates. Also, Congress passed the pay-for-performance bill which is the accountability for the bankers that are asking or bailout money. Geithner said on Face the Nation that Congress' bill will be adopted by Treasury for banks wanting bailout money. They don't perform, they don't get any money. Treasury are acting like lenders and banks are acting like consumer asking for a loan.
Lastly, Geithner has over 20 years experience in his field. As following the timeline of the accountability of the TARP, all roads and responsibility lead to Hank Paulson since Paulson was the ultimate decisionmaker of the TARP given by Bush.
Geithner inherited Paulson's mess. So, Geithner should be judged as Treasury Secretary the minute that he took office on his policies that he has now put in place to fix the financial crisis and not the blunders of the TARP money under the Bush Administration.
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