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Geithner Loses It After Bair Refuses To Yield Power To Fed

Tyler Durden's picture




 

It seems the Secretary of the Treasury forgot to take his Xanax on Friday. The WSJ reports that "Timothy Geithner blasted top U.S. financial regulators in an
expletive-laced critique last Friday as frustration grows over the
Obama administration's faltering plan to overhaul U.S. financial
regulation." Presumably the source of Geithner's ire was Sheila Bair's (and probably Mary Schapiro's) unwillingness to yield power over to Bernanke.

Among those gathered in the Treasury conference room were Federal
Reserve Chairman Ben Bernanke, Securities and Exchange Commission
Chairman Mary Schapiro and Federal Deposit Insurance Corp. Chairman
Sheila Bair.

Friday's roughly hourlong meeting was described as unusual, not only
because of Mr. Geithner's repeated use of obscenities
, but because of
the aggressive posture he took with officials from federal agencies
generally considered independent of the White House. Mr. Geithner
reminded attendees that the administration and Congress set policy, not
the regulatory agencies.

If Geithner gets so worked up over a couple of powerless agencies giving up their turf to an already overlordish Federal Reserve, one can only imagine how JPM's SPY traders must dread any caller ID starting with 202 on one of those rare down days or why Wen Jiabao knows never to allow indirect interest in Tsy auctions to drop below 50% going forward.

On a more serious note, this begs the question: is the SecTsy finally losing it and why? Or, in a Machiavellian ploy of sinister brilliance, did Larry Summers orchestrate all of this by turning off CNBC access at the U.S. Treasury, in hopes of creating a brief but deadly Western standoff between his adversaries (all of them)? If nothing else, it would explain the cable station's increasingly declining viewership.

 

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Tue, 08/04/2009 - 06:03 | 23773 Apocalypse Now
Apocalypse Now's picture

And Bair informed him that depositories have turned into suppositories.

Tue, 08/04/2009 - 09:57 | 23874 Anonymous
Anonymous's picture

may I use this phrase in my bloggings?

Tue, 08/04/2009 - 14:49 | 24397 Anonymous
Anonymous's picture

You may

Tue, 08/04/2009 - 07:57 | 23784 SlowTrader
SlowTrader's picture

 

 

the paradox is that he may be able to sell his RE after this.If that happens Jon Stewart/John Oliver should get a commission

http://www.thedailyshow.com/watch/wed-july-29-2009/home-crisis-investiga...

 

 

Tue, 08/04/2009 - 12:13 | 24044 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Not if he still wants more $$ than he paid for it :p

Mon, 08/03/2009 - 22:56 | 23608 Gilgamesh
Gilgamesh's picture

Because as the head of the Treasury, setting tax policy wasn't enough of a side project for you Timmy?

 

Or maybe he had just opened that seemingly innocuous text, which turned into video of a burning owl.

Tue, 08/04/2009 - 12:25 | 24072 Anonymous
Anonymous's picture

"tax policy" or "turbo tax policy"?

Mon, 08/03/2009 - 22:57 | 23610 texpat
texpat's picture

Sweet! The angry mob is now inside the treasury.

We all know Obama looks at HuffPo. Is it really so hard to believe Geithner gets emailed link to ZH when he's featured?

Fuck you Timmy! And your investment banker friends!

Tue, 08/04/2009 - 09:03 | 23832 Cheeky Bastard
Cheeky Bastard's picture

hahahahaha

Tue, 08/04/2009 - 10:36 | 23918 Anonymous
Anonymous's picture

Ya, but...noone reads the comments section.

"Fuck you Timmy! And your investment banker friends!"

With insight suchass this, why bother?

AnonFK

ps. Need moar poltic drama so eyes never get the desire to read the comments ever, ever again.

pps. Do you like rage?

Mon, 08/03/2009 - 22:59 | 23611 Anonymous
Anonymous's picture

what a spoiled little whiny douchebag. F him. good for Sheila for actually doing her job and not letting that asshat boss her around.

Mon, 08/03/2009 - 23:30 | 23655 Anonymous
Anonymous's picture

Doing her job???

Wait, I have to do it again:

Doing her job?????

Tue, 08/04/2009 - 00:31 | 23698 Anonymous
Anonymous's picture

Well, think about it, maybe Bair's cool with winding down some banks but Geithner won't give her the money, he wants to just hand it over to them like the feds been doing. Could be.

Tue, 08/04/2009 - 01:11 | 23724 Wilderman
Wilderman's picture

Maybe she wants more money than he can deliver, and he's terrified the fed won't be in charge.  After all, they're the ones with the power to the presses.  Is the Fed obligated to purchase treasury issuances? 

Tue, 08/04/2009 - 07:01 | 23787 Anonymous
Anonymous's picture

As TD has previously posted, it could prove very difficult for the FDIC to tap that $400-500B line of credit without causing serious disruptions to treasuries and the dollar. However, Chairperson Bair proposed raising FDIC insurance premiums to at least somewhat mitigate the FDIC's pending insolvency problem. She was fought tooth and nail by bank lobbyists on the Hill. I guess banks can have their/our cake and eat it too.

Tue, 08/04/2009 - 07:40 | 23798 Arm
Arm's picture

You could raise their premiums to 100% of income and it still would not cover everyting that has been lost.  Banks have once again lost more than they ever made in their entire HISTORY. 

I am now understanding why the Israelites had a Jubilee every 50 years.  All debt outstanding was cancelled at the time.  Of course people would cut back before and there was little to forgive, but it also was a form of controlled deleveraging of the economy.  Also all those nice rules regarding usury (fractional reserve banking was considered usury, because you lent what you did not have).  I guess a couple millenia of monetary crises taught ancient people about economic order. 

It would be great if we could develop a mechanism to achieve a similar effect with the current modern limitations.

 

Tue, 08/04/2009 - 07:55 | 23803 Anonymous
Anonymous's picture

My toast is done. Shit, I burned it.

Tue, 08/04/2009 - 10:04 | 23880 Anonymous
Anonymous's picture

superb observation. However, one needs *exceedingly* long lifespan (and no, written records wouldn't cut it) to observe such rare debt collapse events and determine them to be an inevitably repeating pattern. Now who has such long lifespan? hmmm...

Tue, 08/04/2009 - 14:26 | 24346 ZerOhead
ZerOhead's picture

Vampire banksters???

Tue, 08/04/2009 - 08:17 | 23814 SWRichmond
SWRichmond's picture

"what a spoiled little whiny douchebag."

You called it, my friend. 

Mon, 08/03/2009 - 22:59 | 23612 Anonymous
Anonymous's picture

it is all coming undone- just when the Fed thought thery had indeed fooled everyone that all was safe- suddenly it becomes apparant that they had not.

say good night gracie- pride goeth before the fall.

Mon, 08/03/2009 - 23:00 | 23613 Daedal
Daedal's picture

I think a more apt description of Geithner's behavior is called a 'temper tantrum'. I say they bring Donald Trump into these meetings from now on.

Mon, 08/03/2009 - 23:01 | 23617 Quantum Noise
Quantum Noise's picture

Timmay is the Dennis Kneale of government.

Tue, 08/04/2009 - 01:05 | 23719 Anonymous
Anonymous's picture

Funny.

Tue, 08/04/2009 - 02:13 | 23742 Anonymous
Anonymous's picture

Wait...

I thought Dennis Kneale was the TurboTax Timmy of CNBC??

Tue, 08/04/2009 - 16:18 | 24633 Anonymous
Anonymous's picture

BRAVO!! Post of the DAYYYY!!

Mon, 08/03/2009 - 23:01 | 23618 lsbumblebee
lsbumblebee's picture

"We let Timmy cry himself to sleep. He's had a big day."

 

- Timmy's Mom

Mon, 08/03/2009 - 23:24 | 23646 Anonymous
Anonymous's picture

My friend's mom is friends with Timmy's mom (on Cape Cod MA). When asked how her son is doing, Timmy's mom replied (in July) that her son's job is a little "stressful".

Tue, 08/04/2009 - 01:09 | 23721 Lets_Eat_Amen
Lets_Eat_Amen's picture

Let's be honest, "stressful" is what normal people may describe their jobs.  When you cheat on your taxes and get appointed to the Treasury the worst day of work can only be described as shanking your 9 iron at Congressional GC into the water.

Tue, 08/04/2009 - 07:04 | 23788 Anonymous
Anonymous's picture

"stressful" is how people looking to re-obtain employment with something approaching their most recent wages would describe the process. i.e., if I had been successful in this regard, I would feel far less "stressed" right now.

Mon, 08/03/2009 - 23:02 | 23619 aldousd
aldousd's picture

been in government all of his career. figures.

Tue, 08/04/2009 - 10:09 | 23888 alpha charle
alpha charle's picture

Yup.  Timmy is getting a crash course on the dynamics of rubber meeting the road.  He's never held a private sector job in his life, like his boss, the President, so his view of things are colored by this.

Mon, 08/03/2009 - 23:02 | 23620 Anonymous
Anonymous's picture

Fed Plans to Strengthen Bank Examinations With Teams of Experts
http://tinyurl.com/m6bdur

Another scam in the making.

Mon, 08/03/2009 - 23:11 | 23626 texpat
texpat's picture

Direct line to Goldie.

"We have another bank to short"
"Which one?"
"All of them them!"

Mon, 08/03/2009 - 23:06 | 23623 Anonymous
Anonymous's picture

In other news:

Look for Timmy Geithner to "spend more time with his family" momentarily.

Mon, 08/03/2009 - 23:29 | 23654 Jim_Rockford
Jim_Rockford's picture

Dead fish delivery from Rahm?

Tue, 08/04/2009 - 12:29 | 24086 Anonymous
Anonymous's picture

maybe they should put rahm in charge of the treasury. he did such a great job of cleaning up fannie mae...

Tue, 08/04/2009 - 10:34 | 23916 Anonymous
Anonymous's picture

Good. It'll give him some time to spiff up that tile in his bathroom. Good Gawd, Timmay!

Mon, 08/03/2009 - 23:09 | 23625 Anonymous
Anonymous's picture

He'll be the first one out the door - to "spend more time with his wife and children". He'll implode by New Year's Day. That's a better bet than the S&P reaching 1200 - I do believe.

Tue, 08/04/2009 - 02:18 | 23746 ghostfaceinvestah
ghostfaceinvestah's picture

If he doesn't deliver the Fed the power they are expecting, a retirement will be a best case scenario.

Mon, 08/03/2009 - 23:11 | 23627 Anonymous
Anonymous's picture

You have to understand that these people are not stupid and they can look at a calendar. They KNOW they lose lots of seats next year if they don't have unemployment clearly cleaned up by then and as soon as that happens, Congress will let nothing at all happen. That's the ballgame for them. That will pin the eternal label of failure on them because things are going down sharply from then on and they'll be the administration in power while it happens. The Herbert Hoover Administration of the Second Great Depression.

Tue, 08/04/2009 - 06:54 | 23783 zeropointfield (not verified)
zeropointfield's picture

they are not concerned too much with elections, since they own both sides of the aisle. it may be more about discrediting a world view.
nothing like a giant mess to "prove" that government just does not work. even if the mess is fabricated and the people who have been put at the helm have never been supposed to succeed.

Mon, 08/03/2009 - 23:15 | 23629 Miles Kendig
Miles Kendig's picture

Your question cannot be a serious one.  Can it TD?

Geithner has the responsibility to carry the water and not only is he is failing, he is flailing.  Sooner or later folks are not only going to inquire a bit more as to his calling patterns, e-mail trees and who he lunches with, especially while in New York he will be reminded of them.  You do remember the action earlier this spring don't you?

Without isolating the next wave within the Fed with the FDIC merely acting as the conduit for the leverage then all might still be lost for the market makers.  Things are still very precarious.  Especially with the media counter blitz currently underway questioning certain market enhancement techniques implemented to assist the market makers with staving off insolvency.  The lending primarily in China and the US is funding current operations.  This formula cannot continue without substantial advancement in the effects of the PSYOP that remain stubbornly absent here abouts.

Then there is the fomenting rebellion at the FDIC and the FASB with respect to accounting standards on hold to maturity & investment and loss provisioning for second mortgages.  All in all not Tim's or Ben's best week. 

I must call you to note how Tim, Ben and the hopeful warriors happen to be responding to the current level of stimuli.  I suggest it may well be time for an advancement of the level of attention certain aspects of current operations are receiving from high quality divergent centers of opinion.

Mon, 08/03/2009 - 23:37 | 23630 Comrade de Chaos
Comrade de Chaos's picture

Good Point TD, however is LS wise enough to be/remain a "grey general?" My bet is on Chief of Staff who is silent but ruthless. : )

Mon, 08/03/2009 - 23:14 | 23631 Anonymous
Anonymous's picture

Dude, did you dump the math questions. LOL.

Fuck Timmy, perhaps we are going to get some serious looks. Shit, the FDIC has to absorb all this garbage as CNB is raided and Corus has negative Tier 1.

What the fuck is going on. That's about $50B of assets.

Mon, 08/03/2009 - 23:18 | 23639 Miles Kendig
Miles Kendig's picture

All that and more is necessary to obtain the extra funding from congress so the Fed can lever it up to enhance current operations...

Mon, 08/03/2009 - 23:32 | 23659 Anonymous
Anonymous's picture

Seriously though. Maiden Lane is coming due, the FDIC is taking serious hits on the BAC/Citi guarantees.

And now two HUGE FUCKING BANKS asset wise are failing. What kind of a hit did the FDIC take on Indymac, and that was before the higher limits of $250k and unlimited business limits.

Frankly, Indymac is a walk in the park compared to CNB and Corus. Guaranfuckingteed.

Mon, 08/03/2009 - 23:42 | 23669 Miles Kendig
Miles Kendig's picture

Without doubt.  Just remember these are the ones being discussed in the public domain.  It has been postulated that the FDIC has issued more than 300 letters of concern this year.

I repeat that what is building is another means to extract 500-750 billion in emergency FDIC funding.  Sure they will need 200-300 of it.  The remainder levered at 15/20:1 will be of great assistance to the Fed & Treasury at sustaining their current market arrangements.

There is more than one kind of cash for clunkers funding scheme going on right now......

Mon, 08/03/2009 - 23:52 | 23678 Anonymous
Anonymous's picture

Agreed, they have that $500B credit line from the Treasury and will be tapping it very soon.

Karl Denninger is absolutely correct. We have $2T left to go in residential and at least another $500B to go in CRE.

We'll see what happens.

Tue, 08/04/2009 - 01:11 | 23723 Lets_Eat_Amen
Lets_Eat_Amen's picture

I think your numbers for residential and CRE are reversed, or at least i've seen numbers in the trillions for CRE but most of that spans about 3 years.

Tue, 08/04/2009 - 04:17 | 23758 Miles Kendig
Miles Kendig's picture

I suspect that after the summer recess we may well see an "emergency" measure co-authored by Carolyn Maloney and Darrell Issa, The Commercial Real Estate Emergency funding Program or CREEP to attempt to relieve the Federal Reserve and the FDIC of their squabble and "target" funding specifically to the CRE issue. I also suspect that in order to get the Blue Dogs and more importantly Senators Kent Conrad and Charles Grassley aboard they will add an additional 100 billion for Agriculture funding so farmers can be assured the funding is available to put the winter wheat in and to compensate California growers for the lack of water.  This will modify the program to C.R.E.E.P./AG.  At 10/15:1 it will need about 310 billion.

Then Paul Kanjorski and Marsha Blackburn will insure that the FDIC special funding measure, The Depository Stability Act is co-authored and sails through on a voice vote.  It will be discovered later that under exigent circumstances, the Treasury and the Federal Reserve can borrow against these funds to assist with their financial services stability and renewal program.

Tue, 08/04/2009 - 09:22 | 23845 deadhead
deadhead's picture

don't forget Guaranty Federal which is a biggie.

 

 

Mon, 08/03/2009 - 23:14 | 23632 Anonymous
Anonymous's picture

Geithner yelling at the women, how pitiful. I doubt that's going to work, Timmay.

Mon, 08/03/2009 - 23:31 | 23656 Anonymous
Anonymous's picture

true, it shows how insecure and immature he is

Mon, 08/03/2009 - 23:43 | 23670 e1even1
e1even1's picture

and how afraid he is.

Tue, 08/04/2009 - 00:22 | 23696 molecool
molecool's picture

What's wrong with yelling at women? I do it all the time...

Tue, 08/04/2009 - 00:32 | 23700 Anonymous
Anonymous's picture

Charm works better in the long run, trust me.

Tue, 08/04/2009 - 08:18 | 23815 Anonymous
Anonymous's picture

But when the women can out-think you two to one, the only thing you can do is yell at them. Listen to Rush Limbaugh.

Tue, 08/04/2009 - 16:23 | 24652 Anonymous
Anonymous's picture

Or that he's been spending far too much time with Rahm.

Tue, 08/04/2009 - 16:24 | 24654 Anonymous
Anonymous's picture

Sheila Bair could give a Fat Baby's ASSSS what Timmy thinks...she should take off her heel and pin his smarmy, Goldman bought and paid for dumb ass against the WALL!

Giving the FED more power over our money supply and policy would be like giving Jeffrey Dahmer a Cub Scout leader job.

Mon, 08/03/2009 - 23:16 | 23635 Anonymous
Anonymous's picture

Aw, it's really stressful running a house of cards. Plus all that looking over your shoulder everywhere you go.

Mon, 08/03/2009 - 23:17 | 23637 Gilgamesh
Gilgamesh's picture

Starring Will Ferrell as Sheila Bair:

http://www.youtube.com/watch?v=02572EyOIzQ

Mon, 08/03/2009 - 23:24 | 23647 Anonymous
Anonymous's picture

800 billion goes a long way. Masterbate, rinse and repeat.

If one of these desenters goes deep throat on timmy it's all over.

Mon, 08/03/2009 - 23:25 | 23650 Anonymous
Anonymous's picture

As in cover up

Mon, 08/03/2009 - 23:25 | 23651 Anonymous
Anonymous's picture

Supepeon the white house tapes

Mon, 08/03/2009 - 23:27 | 23652 SV
SV's picture

The facial similarity is suspect.  I wonder if the transcript from the meeting has a resemblance:
http://www.youtube.com/watch?v=jP5OcQdxlSk

Mon, 08/03/2009 - 23:32 | 23657 Sqworl
Sqworl's picture

Lasie, Lasie, Timmy's not doing the Well..lol

Mon, 08/03/2009 - 23:32 | 23658 Jim_Rockford
Jim_Rockford's picture

The description of the meeting instantly reminded me of a meeting from several years ago.  Present were Rubin, Levitt, Greenspan, and a little lady named Brooksley Born ...

Tue, 08/04/2009 - 02:25 | 23748 Anonymous
Anonymous's picture

Robert "What me worry?" Rubin, Levitt and "Crazy Chester" Greenspan...

What a bunch of limp dicks...

Born was the only one with nads in that room.

Mon, 08/03/2009 - 23:34 | 23660 JohnKing
JohnKing's picture

Timmay say defang them before we get bit.

Mon, 08/03/2009 - 23:45 | 23672 Anonymous
Mon, 08/03/2009 - 23:54 | 23681 capitalisa
capitalisa's picture

Damn!  All those waves made me sea sick.

Tue, 08/04/2009 - 02:41 | 23750 Anonymous
Anonymous's picture

Your friend McHugh is smoking crack...

There not only won't be any discussion of a $13 trillion massive tax rebate...

The O boys are trying to sell a national sales tax to convince the Chinese we are serious about deficits and to keep buying those Bonds...

McHugh's paragraph 4 and 5 analysis is spot on.

Mon, 08/03/2009 - 23:50 | 23675 Anonymous
Anonymous's picture

Game Over ?

They have until October.

Politics always trumps Free Markets and it's all calculated!

If this fiasco hasn't turned-around by then, the O-Team will send in "The Cleaner" and the Election Cycle will rein.

Result:
- misallocated Capital encouraged overcapacity and the Social Contract with Labor is null & void
- End of '09, Bargaining & Hope is lost and Anger causes heads to roll (i.e., B.B., L.S. and T.G. are out as the nation moves closer to socialism)
- 2010 will bring Depression and will end with Acceptance
- 2011 re-election campaign kicks in with promises to Labor of a "Road to Recovery"
- 2012 Capital gets the backseat, Labor is in the driver's seat. O-Team is re-elected with a majority in the House

The fate of capitalism as we know it, will forever have changed!

Election Cycles:
...note election year Novembers, the February following election year Novembers has been an excellent indicator as to whether the election year November would mark[s] an important top. In every case since at least 1968, when February following election year November moves to a higher high than the January following election year November, the market has proceeded to do very well.

Conversely, when the post-election year February is unable to move higher than the post-election year January, a significant market decline has always followed. This may be coincidence but it has proved prescient for at least the past 40 years.

Tue, 08/04/2009 - 01:59 | 23740 Anonymous
Anonymous's picture

and by 2013, the Revolution begins.

Tue, 08/04/2009 - 16:36 | 24686 Anonymous
Anonymous's picture

When will you tools wake up and realize we are not moving towards 'socialism' but Fascism. Socialism aims to help people, fascism to help corporations.

Where in the fuck do you see any of these programs helping 'The People'?

Mon, 08/03/2009 - 23:51 | 23676 Undertaker (not verified)
Undertaker's picture

 

and they'll be the administration in power while it happens. The Herbert Hoover Administration of the Second Great Depression.

 

Nope, Boris Yeltson 1991

The Yeltsin era was marked by widespread corruption, economic collapse, and enormous political and social problems. By the time he left office, Yeltsin had an approval rating of two percent by some estimates

http://en.wikipedia.org/wiki/Boris_Yeltsin

Tue, 08/04/2009 - 00:05 | 23688 Anonymous
Anonymous's picture

I support Shiela from what I've read about her, but she needs to start walking the walk.

Tue, 08/04/2009 - 00:08 | 23692 texpat
texpat's picture

It just needs a fart in the wrong room and the whole house of cards comes down.

Tue, 08/04/2009 - 09:01 | 23830 Anonymous
Anonymous's picture

Well somebody get me in there! I can fart almost on command!

Tue, 08/04/2009 - 00:09 | 23693 SV
SV's picture

But alas, she can't.  Timmaw has to fund that action if she is to "do her job", per Karl she's plum run out of funds.  She can't take down many with only ~800 in the kitty.  I expect that was a component in the situation in that room.

Tue, 08/04/2009 - 00:52 | 23713 Anonymous
Anonymous's picture

That's what makes it so fun to watch the Colonial situation. Tick, tick, tick.... When the counter hits zero someone has to show their cards.

Tue, 08/04/2009 - 05:22 | 23768 Lothar the Rott...
Lothar the Rottweiler's picture

Yes, sir, tip of the iceberg for Southeastern banks.

These mofos are all overlevered like every other bank.

They can't foreclose on all the nice homes and other properties they own b/c they don't have enough people.

Poof!

Or, Puff the Magic Dragon.

I just saw another sign looking to "rent" out a 200K house in the hood next to mine.  Their mortgage has to be around 1,500/mo.  No way they are getting that - the bagholder of the loan is going to get it.

 

Tue, 08/04/2009 - 00:07 | 23690 MinnesotaNice
MinnesotaNice's picture

From my experience... seasoned managers generally lose control when:

  1. they have been outmaneuvered
  2. things are going bad really quickly

I would expect a combination of the two... Timmy is used to getting his way... and Bair and Schapiro are not interested in playing the game that he and Bernanke want to play (and need to play). 

Tue, 08/04/2009 - 00:42 | 23706 Anonymous
Anonymous's picture

Well, it's not as if Bair or Shapiro are that voice in the wilderness.

I think it's simply a function of the fact that you can only beat math for so long.

But eventually .... math beats you.

THE FUNDAMENTALS WILL ALWAYS RULE. hence the fucking name.

I have a very bad feeling all this well end horribly. Although it might have been put off for a decade as our debt builds uncontrollably.

Tue, 08/04/2009 - 01:36 | 23735 capitalisa
capitalisa's picture

I wish people would stop talking about "decades" or "kicking the can down the road".  For Pete's sake people, government's been kicking down the road for decades already.  There is NO MORE ROAD.  WE are the children and grandchildren who have to pay.  WE are the ones they were talking about decades AGO when they started this crap.

Tue, 08/04/2009 - 07:41 | 23799 Anonymous
Anonymous's picture

second that.

Tue, 08/04/2009 - 08:53 | 23825 SWRichmond
SWRichmond's picture

There is no "pay" in the "make payments" sense.  There is default.  We will pay in lifestyle.

Tue, 08/04/2009 - 09:27 | 23849 deadhead
deadhead's picture

very well said capitalisa....accurate in my view

Tue, 08/04/2009 - 16:39 | 24695 Anonymous
Anonymous's picture

Word.

Tue, 08/04/2009 - 01:38 | 23736 Anonymous
Anonymous's picture

A possible ploy to consolidate Obama's power over the Fed. Get Timmy to collect as much additional powers as possible for Bernanke, but must be done soon, because Bernanke will be not be reappointed; Summers to take over in January 2010.

Now the team is set: Barry, Timmy and Larry (with added powers won "in a rush" in October 2009).

Obama rules the Treasury and the Fed.

Tue, 08/04/2009 - 04:53 | 23763 theadr
theadr's picture

Barry, Timmy, Larry ~ the 3 stooges.

Tue, 08/04/2009 - 10:17 | 23896 texpat
texpat's picture

nyuk nyuk nyuk nyuk.

Tue, 08/04/2009 - 07:00 | 23785 agrotera
agrotera's picture

It's the other way around.  Both Obama and Geithner had long deliberations about what direction to take and it took them til about a month after the inauguration to announce that they supported the paulson/bernake plan--which made them accomplice to that whole heist.  And during the deliberations, they both spoke in a way that made them sound suspect of the actions taken by bernake/paulson, then all of a sudden they were on board...the Fed runs the country and our elected officials period, except for maybe Rep. Paul, Grayson and a few other representatives.

 

Tue, 08/04/2009 - 10:14 | 23894 Gilgamesh
Gilgamesh's picture

The Bankers will never forget the lesson of the creation of the Fed.  Get the Banks and Bankers (and eventually Congress) to publicly "oppose" the plan, whilst knowing that it's a sweetheart deal that they want/need to enact.

 

They have taken it a step further; don't stop bashing it when it passes.  Keep coming up with instances where the Banks were "harmed" by the terms of the deal (like the BAC distraction yesterday).

Tue, 08/04/2009 - 03:38 | 23755 Miles Kendig
Miles Kendig's picture

Perhaps they have a better idea of what their position is worth

Tue, 08/04/2009 - 00:17 | 23694 Milton
Milton's picture

Well whoever leaked that story to the WSJ knows how to play hardball. Looks to me like Timmy is being set-up to be the fall guy when everything collapses.

Tue, 08/04/2009 - 02:45 | 23752 Anonymous
Anonymous's picture

My money has always been of Fat Larry to win.

Tue, 08/04/2009 - 03:36 | 23754 Miles Kendig
Miles Kendig's picture

They both are canon fodder...

Tue, 08/04/2009 - 12:36 | 24102 Anonymous
Anonymous's picture

if larry were to replace either timmay or ben, then we would regret ever complaining about either.

Tue, 08/04/2009 - 00:28 | 23695 My cognitive di...
My cognitive dissonance's picture

Whatta shake down.

Sources familiar to the meeting, meaning fourth party familiar, have added that, he also farted or at least someone or something did.

Fortunately, the windows could be opened.

Unfortunately, the stains were harder to remove.

Congrat's TD!!!

2999 Twitters!!!

Oh wait...now it's 2998 again.

Your first follower, Prospectus just bailed.

 

Tue, 08/04/2009 - 10:29 | 23910 Sqworl
Sqworl's picture

Thanks, that made me laugh...

Tue, 08/04/2009 - 00:40 | 23705 Anonymous
Anonymous's picture

Hey Tyler you should be nice to CNBC...it's like watching you pick on the retarded kid at school.

Tue, 08/04/2009 - 07:01 | 23786 agrotera
agrotera's picture

Timmay!

Tue, 08/04/2009 - 00:50 | 23712 Anonymous
Anonymous's picture

Behold!
Buy Gold!
But only when it falls below $800/oz.
When there is no more ink in the printing presses...,
the supermarket shelves are bare,
and Central Bankers have sold off their share,
the shift in wealth from the rich to the middle
will give us our only remaining dead cat bounce.

Matteo

Tue, 08/04/2009 - 04:55 | 23765 theadr
theadr's picture

Fuck gold, what good is gold with nothing to buy.  Buy Marlboros.

Tue, 08/04/2009 - 16:43 | 24707 Anonymous
Anonymous's picture

And good whiskey. Good whiskey makes a helluva a barter currency in a post-currency-meltdown world.

Tue, 08/04/2009 - 01:06 | 23720 Lets_Eat_Amen
Lets_Eat_Amen's picture

The only way to solve this is for Timmy G. to have a "beer summit" to regain face with the regulators.

Tue, 08/04/2009 - 01:11 | 23725 duggenz
duggenz's picture

Geithner perfected the smoldering, red-faced glower from watching Dick Cheney.  He mastered the wide-eyed, head-tilting gaze of adoration after pouring over countless Lassie reruns.  Obviously, he watches Jim Cramer too.   

Tue, 08/04/2009 - 01:22 | 23727 Anonymous
Tue, 08/04/2009 - 01:28 | 23728 Anonymous
Anonymous's picture

he was yelling about:

SAN FRANCISCO (MarketWatch) -- The Federal Deposit Insurance Corp. said late Monday that banks should recognize losses on home loans promptly and warned that failure to do so could delay efforts to mitigate the financial impact.

and FBI raids is my guess. (he was caught long when he shoulda been short.)

Tue, 08/04/2009 - 01:30 | 23731 ToNYC
ToNYC's picture

What could be better than knowing either he or his nexts-in-command

are staying up late reading our comments about how everybody knows they have no clothes on.

Tue, 08/04/2009 - 01:32 | 23734 Quantum Noise
Quantum Noise's picture

Timmay's lips move but all Sheila can hear is "meep, meep meeeeep".

Tue, 08/04/2009 - 01:38 | 23738 Anonymous
Anonymous's picture

FDIC’s Bair Opposes Single Regulator, Saying Plan ‘No Panacea’
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By Alison Vekshin

Aug. 4 (Bloomberg) -- Federal Deposit Insurance Corp. Chairman Sheila Bair opposes the merger of four existing federal bank regulators into a single agency, saying for the first time such a plan is “no panacea” for effective oversight.

Consolidating agencies would disrupt regulatory staffs and may overlook the needs of community banks that rely on state supervision, Bair said in testimony prepared for a Senate Banking Committee hearing today in Washington and obtained by Bloomberg News. Bair supports other aspects of Obama’s plan.

“Proposals to create a unified supervisor would undercut the benefits of diversity that are derived from the dual banking system,” Bair said. “Political capital could be better spent on more important and fundamental issues which brought about the current crisis.”

http://www.bloomberg.com/apps/news?pid=20601103&sid=as1rWAoTESnU

Tue, 08/04/2009 - 05:49 | 23772 e1even1
e1even1's picture

on the other hand, centralized regulation would be easier to corrupt and control than multiple 'independants'. i think that's the administration goal. dont forget to take your blue pill.

Tue, 08/04/2009 - 10:30 | 23911 Sqworl
Sqworl's picture

They are negotiating power share!!!!

http://www.youtube.com/watch?v=3oKwg6W05MU&feature=related

 

Tue, 08/04/2009 - 07:42 | 23801 Anonymous
Anonymous's picture

I don't know why Sheila Bair gets so much credit from some of the people who post on this site. You have to remember two things: she was a banking regulator during a collapse (yes that makes her accountable) and she's a government employee (if she is so competent, why is she working for the government?). Sheila Bair is totally insignificant in the policy discussion. As TD has pointed out, the FDIC has no money. They're tapping a money line from the Treasury. So Bair is requesting money from Geithner, he has the legal responsibility for the funds requested.

Government employees loath agency consolidation because they fear (rightly) that a lot of them are going to get fired. They hate over-arching plans and major overhauls. This is the parasitic class of society. They have no real talents or skills and they're lazy as shit.

I'll give Timmy the benefit of the doubt on this. The political stooges that run the other agencies probably came to him with some fucktard plan. DC still doesn't know what's going on.

Tue, 08/04/2009 - 09:06 | 23834 Anonymous
Anonymous's picture

Anybody that gives Timmy Tax Cheat the benefit of the doubt on this is clueless beyond clueless.

Tue, 08/04/2009 - 16:50 | 24720 Anonymous
Anonymous's picture

" . . . if she is so competent, why is she working for the government?"

Oh, gee, I don't know. Maybe she was raised by good parents or went to Catholic school, has children, grandchildren, gives a damn and actually has a conscience, cares about her country?

Of course, we know who Timmy really cares about, now don't we? I mean, besides himself.

Tue, 08/04/2009 - 01:40 | 23739 Anonymous
Anonymous's picture

Don't know if any of you saw this from the Daily Show. Timmy can be the butt of many jokes.

http://commoditybullmarket.blogspot.com/2009/08/hilarious-daily-show-cli...

Tue, 08/04/2009 - 02:00 | 23741 Anonymous
Anonymous's picture

Turbo Tim is the Patsy and he doesn't even know it. Rahm already has him measured for a body bag and will use it when the pitchforks and torches are visible on the horizon.

Tue, 08/04/2009 - 16:52 | 24723 Anonymous
Anonymous's picture

Really? Just like that, Rahm (and by extension, Obama) is gonna be able to fire the bankers' boy?

Grow up. The president of the United States is a puppet and does what he's told; he is not a 'firing' manager except when it suits his bosses' whims.

Tue, 08/04/2009 - 02:14 | 23744 Anonymous
Anonymous's picture

Sheila, who the fuck do you think you are?

Don't cross Timmay!
http://www.youtube.com/watch?v=ThtQTIK3UFw

Tue, 08/04/2009 - 02:14 | 23745 Anonymous
Anonymous's picture

Tyler, why didn't you include the video of the meeting?
http://www.youtube.com/watch?v=bNmcf4Y3lGM

Tue, 08/04/2009 - 02:21 | 23747 ghostfaceinvestah
ghostfaceinvestah's picture

His puppet masters at the Fed must be cranking up the heat on Timmy.  If he doesn't deliver them the power they have been waiting on for decades, he is as good as dead.

Tue, 08/04/2009 - 04:17 | 23759 Anonymous
Anonymous's picture

Is it just me, but when you watch Mr. Geithner don't you get the feeling that in college he played too much Dungeons & Dragons instead of studying economics? Now he finally has his shot, after all those years of being just head of the New York Fed to finally be Dungeon Master and no one will cooperate.

I suspect that he was a female half-elf, 17th lvl mage.

Tue, 08/04/2009 - 16:57 | 24731 Anonymous
Anonymous's picture

I'll wager he was more a gnome illusionist type.

FWIW, Geitner "attended Dartmouth College, graduating with a B.A. in government and Asian studies in 1983.[4] In the process he studied Mandarin at Peking University in 1981 and at Beijing Normal University in 1982.[5] He earned an M.A. in international economics and East Asian studies from Johns Hopkins University's School of Advanced International Studies in 1985.[4][6] He has studied Chinese[4] and Japanese."(Wiki)

Not much of an economics background for the TSOTUS.

Tue, 08/04/2009 - 04:55 | 23764 Anonymous
Anonymous's picture

FUCK YOU LARRY. 30 X Leverage is healthy.

Tue, 08/04/2009 - 06:29 | 23774 nhutchinson
nhutchinson's picture

Sheila was a philosopy major in college. Therefore she understands the epistemology of valuation, which economists and MBAs certainly do not understand.

Tue, 08/04/2009 - 06:29 | 23775 Anonymous
Anonymous's picture

Bair was trying to take his Lucky Charms.

Tue, 08/04/2009 - 06:42 | 23776 Anonymous
Anonymous's picture

Do philosophy majors study the declensions of the word " fuck" - eg. if timmay said "fuck that, i fucking dont give a fuck what you think about the fucking regulations - its just a fucked up piece of paper" - would she be able to decipher it appropriately?

I bet timmay never got to say stuff like that around his male buddies earlier in life- he probably did'nt have the "cred" - ya know. But Now - he can try it out - hey he's the queen for the day.

Tue, 08/04/2009 - 06:46 | 23777 Anonymous
Anonymous's picture

probably doing wonder for his sex life - better than viagra.

Tue, 08/04/2009 - 06:50 | 23779 Anonymous
Anonymous's picture

Does Timmy's mommy know that he threw a temper tantrum and used bad words?

Sigh... how I long for adults to be in charge.

Tue, 08/04/2009 - 06:53 | 23782 Anonymous
Anonymous's picture

"If nothing else, it would explain the cable station's increasingly declining viewership." ??!!

Oh no! Did one of CNBC's two viewers stop watching?

Tue, 08/04/2009 - 07:20 | 23792 Anonymous
Tue, 08/04/2009 - 07:30 | 23794 percyklein
percyklein's picture

What a dope Geither is -- and perhaps the whole Administration.  They do not seem to understand the basic structure of our government.  Sure, the Adminsteration gets to "set policy," but only by succeeding in urging the passage of new laws by Congress or by exercizing powers already granted by Congress.  After that, it's just whining about what it wants but doesn't have.  Congress, indeed, sets policy, but only by passing laws. Otherwise it's just individual members or senators,  or sometimes whole committees or subcommittees, honking their horns.  The independent agencies are and are supposed to be just that: independant entities that exercize powers already conferred on them by Congress and standing, as it were, in the stead of Congress as to the extent power has been delegated to them by it.   I know this is all simple-minded, but Geithner apparently needs to go back to class on the subject.  It is worrsome to have a Secretary of the Treasury who either does not understand this (or the Consitution either) or, worse, elects to ignore it. 

Tue, 08/04/2009 - 07:42 | 23800 Anonymous
Anonymous's picture

It is a mistake to nominate Timmy for Treasury Secretary. When history looks back, Timmy and Benny would be scoffed at.

Tue, 08/04/2009 - 08:04 | 23807 Anonymous
Anonymous's picture

Pathetic Fools

http://www.reuters.com/article/newsOne/idUSTRE5732GJ20090804

http://www.nypost.com/seven/08042009/news/regionalnews/goldman_princes_t...

http://dealbook.blogs.nytimes.com/2009/08/04/blankfein-said-to-order-sta...

Now I would expect this behavior from a band of bandits who want to lay low till the crime has faded from the minds of people

Tue, 08/04/2009 - 11:35 | 23968 Milton
Milton's picture

"Didn't I say not to go buy anything for a while. You gotta fuckin car?" "It's under my mother's name." "Are you stupid or what? Did you hear what I said. Don't buy anything. Don't get anything. Nothin big. Whatsa matta wit you? You gonna get us all fuckin pinched."

http://www.youtube.com/watch?v=_lgLaY9BiAo&feature=related

 

Tue, 08/04/2009 - 12:07 | 24032 Gilgamesh
Gilgamesh's picture

Excellent.

Tue, 08/04/2009 - 08:12 | 23809 Anonymous
Anonymous's picture

NO, CNBC's declining viewership can be explained by the simple fact that the sleeping giant is finally waking up. The American people, even with a public education can add 2+2 and are realizing how much the MSM has been LYING TO THEM!!

They realize that networks like CNBC are merely a tool of the government to keep the masses at the card table.

AND...

They are no longer buying it!

Tue, 08/04/2009 - 09:10 | 23837 Anonymous
Anonymous's picture

The death of CNBC and liberal media is almost upon us.

The next time the market crashes while these turds are declaring the recession over and dow 36,000 and trying to say continuous claims are x% when actual unemployment is xx% will be the last time anybody with a clue pays any attention to the BlowBama media.

Tue, 08/04/2009 - 08:14 | 23813 Anonymous
Anonymous's picture

The FDIC tells banks to "Stop cooking the books"!!!

For those of you that haven't read the latest rant by Denninger, it is highly reccommended!!

http://market-ticker.denninger.net/

Tue, 08/04/2009 - 11:54 | 23998 Wilderman
Wilderman's picture

Denninger's chart (nicely copyrighted, or i would have added an image) shows consumer debt at $2.5 Quadrillion.  I could beleive $2.5T, but quadrillions?  Is something out of whack, or is my head firmly in the sand?

Tue, 08/04/2009 - 08:22 | 23817 SWRichmond
SWRichmond's picture

I absolutely love hearing about Leviathan eating itself.  Keep the pressure on, folks! 

Tue, 08/04/2009 - 09:31 | 23853 deadhead
deadhead's picture

swrichmond...big bonus points from me for using the word "Leviathan". Kudos to you!

Tue, 08/04/2009 - 08:26 | 23818 Sqworl
Sqworl's picture

Timmy is screaming about Lasie's "Fat Tail"...he did the same at the NYFED...

Tue, 08/04/2009 - 08:26 | 23819 glenlloyd
glenlloyd's picture

Bair's outta money anyway, gonna have to start using the Treasury issued Visa card.

Tue, 08/04/2009 - 08:40 | 23821 Danz Gambit
Danz Gambit's picture

Why do people make so many assumptions? Assuming A is true, and B is true, then from that one extrapolates that C must be true. Its usually not.

People are funny.

Tue, 08/04/2009 - 08:44 | 23822 Anonymous
Anonymous's picture

It is just a turf war amongst crooks. Every one is a scoundrel in the cesspool of politics and power.

Do NOT follow this link or you will be banned from the site!