This page has been archived and commenting is disabled.

Guest Post: Captain Obvious (S&P) vs. Captain Oblivious (Tim Geithner)

Tyler Durden's picture




 

Submitted by Nomi Prins

Captain Obvious (S&P) vs. Captain Oblivious (Tim Geithner)

Last week, President Obama
driveled on about nothing of consequence in his budget speech. Yeah, he
said he’d push to roll back tax cuts for the wealthy and close some
off-shore corporate tax loopholes, but he’s said both (many times)
before and neither happened, so in terms of revenue enhancement, it’s a
non-starter.

Today, S&P – that beacon of toxic
asset rating foresight (which has yet to be slapped with any monetary
accountability for its collusive role in bringing down our economy) came
to the astonishing conclusion that
the United States has a debt problem, and tagged the country with a
'negative watch' label. The S&P report proceeded to highlight fiscal
spending issues, related political debating, and our ridiculously high
debt vs. GDP percentage, which is only a few points below 100, as points
of main contention. It paid minor lip service to the ‘financial crisis’
as being a factor. It surprisingly (not) shied away from blaming
ongoing and potentially further devastating fallout from the
overleveraged mortgage related assets still clogging the books of the
Fed, housing agencies and financial firms as the banking system
maintains the appearance of solvency only through federally supported
accounting gimmickry and an exceedingly generous and ‘easy’ Federal
Reserve keeping assets bid and rates low in the face of inflation it
chooses to ignore.

Meanwhile, the media and Washington have been laser focused on $38 billion worth of budget cuts,
a whopping 1 percent of the entire budget, which as slight as it is in
the scheme of things, disproportionately chops public good buckets.
Rather than the excruciating time sink and mind-numbing arguments, it
might have been best to just lop 1% off the top of everything
proportionately, but that would have been too easy, and not political
enough. Maybe then we could have shifted focus to the real cause of our
budget woes – which is that our economy continues to deteriorate and the
people with the power to do something about it are lying about its very
cause and thus its remedies.

The flashing fuchsia elephant at the
core of our economic, and thus budget problems – remains the response to
the financial homicide imparted by the big-banks and abetted by the
Federal Reserve and the Treasury Department. There was a choice to be
made in Washington in the fall of 2008 - smack Wall Street into place,
do a good-ole free-market – you fail if you deserve to fail, we’ll
protect consumer assets and that’s it maneuver - and deal with possibly
intense, but definable fall-out for a short period.  Or - lavish bailout
upon guarantee upon subsidy upon asset purchase upon the lowest rates
in our nation’s history on Wall Street, and wring the very possibility
of a recovery out of the general economy from the get-go. Of course, the
brilliant minds of our exceedingly-privileged, out-of-touch, economic
leadership decided on the former, and are acting their asses off to
pretend that that decision, in itself, wasn’t the cause of the economic
problems that followed, from Main Street anemia, to commodity inflation
to international disdain and a weak currency that has no right to even
have the purchasing capacity it still does.

And, yet Tim Geithner had the audacity
of job-security to take his debt ceiling ‘plea’, on the Sunday Morning
talk show circuit – really, we will be in crisis and other countries
will think poorly of our ability to pay our debts if we don’t raise the
ceiling and increase our debt. In truth, it is Tim Geithner’s ego on the
line, while his boss, through staggering absence of mention, is fine
with assuaging it. Federal Reserve Chairman, Ben Bernanke remained
silent about the topic, not least because between the Fed and the
Treasury department, more debt has been racked up and issued in the past
two years than ever before.  Of course, the debt cap will get raised,
just as it got raised under Treasury Secretaries Paul O’Neil, John Snow
and Hank Paulson.

When Geithner got elevated from the NY
Federal Reserve head position of aiding Wall Street in its time of need
to the Treasury Department, from where he could rubber stamp the entire
bailout notion as being essential to our survival as a nation, the
amount of Treasury Security debt outstanding was $5.7 trillion (in
tradable securities, and $591 billion in nonmarketable ones.)  In August
2008, just before the most powerful banks sucked the soul out of the
country in every manner possible, Treasury debt outstanding was  $4.9 trillion.

Today, outstanding Treasury debt stands at $9.1 trillion,
an increase of $4.2 trillion since the big bailout began, most of which
occurred under Geithner, though it started under Hank Paulson, who in
2007 and recently on Tim's behalf,
has used all of Geithner's current arsenal of reasons to request a
sizeable debt cap increase. All of it, allegedly to avoid a Depression
and propel us to what has been deemed a slow recovery by none other than
the Treasury Department, the White House and the Federal Reserve.

Geithner can (and will) keep pretending
that this seismic debt increase was a requirement to fix our main
economy, even though the actual fiscal stimulus package of the Obama
administration accounts for only 18% of this increase, so the numbers
just don’t fly.  Indeed, they only make sense if you take into
consideration other diversions, like the $1.37 trillion of
Treasuries, about a trillion of which is in excess bank reserves, and
the nearly $1 trillion of mortgage-related securities parked at the Fed,
the $142 billion of mortgage-related assets at the Treasury deparment,
and various remaining FDIC guaranteed bank debt hangover from the
bailout period, and sundries like JPM Chase’s ongoing Fed backing for
its Bear Stearns’s acquisition.

Meanwhile, our debt interest will be more than $430 billion this year,
or more than ten times the amount being quibbled about by the elected
partisan politicians that are debating it, as the value of our debt and
debt-worthiness diminishes.

Anyone can make promises that at some
time in the future, some of any budget will be more in check, or even
that unicorns will overtake the oval office and do a better job running
the economy, but the fact remains – misguided, larcenous policies
created a boatload of debt to float a financial system that continues to
suck us dry (near zero borrowing costs from non-zero lending through
mortgage, personal loans, credit cars, or whatever), and until this fact
is given even an iota of a percentage of the time that the smaller
bantering is given, we will continue to sink further into a financial
abyss of the Fed’s, Treasury department’s, bi-partisan Congress’ and
executive leadership’s making, no matter who’s in charge. For now, there
are those excess reserves at the Fed - just saying.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 04/18/2011 - 18:18 | 1181996 Stares straight...
Stares straight ahead's picture

I hope they can't sleep at night, at least...

Mon, 04/18/2011 - 18:37 | 1182052 Rainman
Rainman's picture

Gubmints most "brilliant" minds thought we were in a transitory cyclical recession. Yeah, right. We'll work it like the last one, and the one before, and the one before that. Educated idiots are the absolute worst !

Mon, 04/18/2011 - 18:41 | 1182062 DoChenRollingBearing
DoChenRollingBearing's picture

OK, OK, I see her points re banksters.

I still think that the CORE PROBLEM is that we vote in .gov public servants who spend more than they take in.

Government spending is the No. 1 problem.  And we all share blame for that by electing them...

Mon, 04/18/2011 - 18:54 | 1182087 topcallingtroll
topcallingtroll's picture

Agreed, you fucking selfish babyboomer, but you guys caused this damn mess.

Hey dochen

What's up?

Long time no see.

Mon, 04/18/2011 - 19:18 | 1182142 DoChenRollingBearing
DoChenRollingBearing's picture

Fcukin' selfish boomer Bearing took a cruise with his wife and her parents (their 65th Anniversary this year, our gift to them) for a week.

Nyaah, nyaah!

Oh, one last thing: it was the YOUNG PEOPLE who ensured that Obama won.  Hope and Change.

Nyaah, nyaah!

(but, your point is valid that we boomers caused a lot of this, shh, don't tell anyone I am agreeing with you...)

:)

 

Mon, 04/18/2011 - 19:38 | 1182175 velobabe
velobabe's picture

Do, i remember you were traveling this time last year, over in italia w/wifey. you are a lucky do.

4:20, coming up^

Mon, 04/18/2011 - 19:42 | 1182196 DoChenRollingBearing
DoChenRollingBearing's picture

velo, every day I realize I am the luckiest guy in the world.  Or would that be the luckiest bearing?

Mon, 04/18/2011 - 20:07 | 1182254 Landrew
Landrew's picture

Govt. spending is the problem?

If you cut everything except WAR ,social security, interest on the debt there is nothing left to cut! So you are saying no national parks? No center for disease control, no NASA, no highway, no coast guard, no education, no energy research, no oversight of nuclear power, no oversight of oil industry etc.?

Why not just move to Mexico or China? So you think the states can handle Tornado's without help? Why is a REPUBLICAN'T governor BEGGING to the FEDERAL government for funds?After the bullshit that comes from that state, I would make them come hat in hand and I mean hat in hand!

FEMA that's crap right? Maybe we all go it alone? Your country isn't a country, my country grows together to build a better future. Your country is sold to the highest bidder. I would rather move to Argentina where at least the cost of living is less. 

Mon, 04/18/2011 - 21:04 | 1182407 sun tzu
sun tzu's picture

The IRS collects $2.2 trillion in taxes. The government spends $3.7 trillion. Your solution is to raise taxes by over 50%? Even if you confiscated every last cent from the Forbes 400 richest Americans, you are still short well over $1 trillion a year. 

Somehow we managed to have national parks, FEMA, NASA, roads, schools etc prior to your Holy Messiah being elected by the idiotic masses and increasing the budget from $2.8 trillion to $3.7 trillion.

You're a dope I can't believe in

Mon, 04/18/2011 - 21:39 | 1182490 DoChenRollingBearing
DoChenRollingBearing's picture

@ Landrew,

Hey, I'm good to cut war, defense and entitlements as well.  We have to cut spending one way or another.

I have a feeling that interest on the national debt will be cut, defaulted on or inflated.

There is plenty we can cut, war and entitlements are OK with me, and I am 55.  No, I will not be collecting Social Security nor Medicare.  As you probably well know, defense and entitlements are the two Big Enchiladas...

Feel better?

Mon, 04/18/2011 - 22:29 | 1182609 Agent 440
Agent 440's picture

meh. Think of all the savings if we get this loser and all the rest one way tickets to the socialist paradise of their choice. Problem solved.

Mon, 04/18/2011 - 23:11 | 1182762 Al Gorerhythm
Al Gorerhythm's picture

Meh. From Utopia to Shangrila.

Mon, 04/18/2011 - 18:45 | 1182067 What does it al...
What does it all mean's picture

I have to say... I try to not to be elite-ist about qualifications and only evaluate people on their innate ability..  But Tim G. is so underqualified for his job that I think it is the only reason that he is still there.  (Can't get a better one elsewhere / less shame?  Like Larry Summers...)  Failing upwards.

I mean, for a secretary of treasury, he doesn't have managerial experience, economics/quantitative skill sets and just talks a good game that is obviously dictated by Rubin/Summers/Paulson/GS/JPM...  At leat The Bernank is somewhat intelligent. (If not mis-guided, not about the monetary policy necessarily, but what a crappy inherited position that Maestro would leave behind.  Mr. Greenspan sure knows how and when to exit.)

 

I mean, Timmy G. should resign / fired right now, but I am sure he will end up running a big bank or something.... (let it be AIG, or GSEs like FNM/FRE!)  I am even thinking of getting rid of the dollar bills that bear his signature.  Appointing him to the post, will remain one of Obama's biggest mistakes, and that is saying something.

Mon, 04/18/2011 - 19:17 | 1182135 NotApplicable
NotApplicable's picture

You talk as if Sec. of the Treasury is a real job.

He is a front-man for the bankster mob, that is all.

Mon, 04/18/2011 - 20:22 | 1182309 What does it al...
What does it all mean's picture

Fair enough.   I just thought that they should at least try to pretend that there is a requirement.  Ph. D., Experience, brain?

Mon, 04/18/2011 - 20:39 | 1182339 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Speaks Mandarin. Good when someone wants to order moo goo gai pan or whatever.

Mon, 04/18/2011 - 21:58 | 1182551 Pegasus Muse
Pegasus Muse's picture

"But Tim G. is so underqualified for his job that I think it is the only reason that he is still there."

Same same for O'bummer.  That's why the power elites selected him.

Tue, 04/19/2011 - 01:05 | 1182976 What does it al...
What does it all mean's picture

Obama at least has a Harvard Law degree, and the editor of the law review. (Which I hear is quite an accomplishment in that circle.)  Tim?  I bet the Chinese makes fun of his Mandarin when he tried to float their yuan.  

Tue, 04/19/2011 - 03:07 | 1183127 baby_BLYTHE
baby_BLYTHE's picture

His father, Peter F. Geithner, was the director of the Asia program at the Ford Foundation in New York in the 1990s. During the early 1980s, Peter Geithner oversaw the Ford Foundation's microfinance programs in Indonesia being developed by Ann Dunham Soetoro, President Barack Obama's mother, and they met in person at least once.

Maybe that is why he was hired and never fired?

http://en.wikipedia.org/wiki/Timothy_Geithner#Family_and_education

Tue, 04/19/2011 - 05:02 | 1183159 Popo
Popo's picture

You want to talk unqualified?  Before becoming god of the financial-universe, Ben Bernanke had a seat on the board of Fed governors for two years, and before that he taught college.

He has two years of experience. Period.

And what were his qualifications for his once-in-a-lifetime promotion?    ... An expressed willingness to increase liquidity, come what may.

He's a college teacher with a penchant for expanding the money supply.  All of this b.s., mumbo-jumbo about being an "expert" on the Great Depression is laughable, considering there is well-known, widespread disagreement within academia about the causes, remedies and and 'what-ifs' of the Great Depression.  And Bernanke's version of the 1930's frequently meets with academic criticism.  His 'expertise' is a trumped up disguise for his real skill, which is a willingness to placate banking interests at the expense of the public.  Period.

Of all the life-long financial badasses that could have been given the job, they handed the crown jewels to a guy with two years of on-the-job experience and a controversial philosophy which just so happened to be bank-friendly in the extreme.

Bernanke is an asshat.  A very dangerous asshat and an enemy of the people of the United States.

 

Mon, 04/18/2011 - 18:20 | 1182003 Hephasteus
Hephasteus's picture

"The USA will never lose it's AAA rating." - Tim Geihtner

Mon, 04/18/2011 - 18:26 | 1182024 lolmao500
lolmao500's picture

Geithner will not leave this world due to natural causes. - The People

Tue, 04/19/2011 - 04:22 | 1183151 ZFiNX
ZFiNX's picture

+111

Tue, 04/19/2011 - 05:02 | 1183162 Popo
Popo's picture

Cue that scene from The Matrix:  "We need guns.   Lots of guns."

Mon, 04/18/2011 - 18:38 | 1182056 I think I need ...
I think I need to buy a gun's picture

The plan has been in place for over 10 years that why little Timmy was the ONLY option. Its top secret and it involves gold

Mon, 04/18/2011 - 20:05 | 1182246 knukles
knukles's picture

You're getting very hot....

Mon, 04/18/2011 - 20:46 | 1182355 Rusty Shorts
Rusty Shorts's picture

heat shield?

Mon, 04/18/2011 - 20:04 | 1182234 knukles
knukles's picture

Well, he's been right so far.

(giggle, giggle, snort, snort)
(Even sounds like Timmah!)

And Trichet today siad that all of the EU members were ahead of the curve on finances.
(What?)

And Sir Alan "the Pimp" Greenspan this weekend on "Meet the Press" (?) said that there was no inflation.  Prices were all going up due to increases in productivity.
(Honest.  He said that.)

And Bill the Cat said; "xzmphlft"
(Which made the most sense of all.) 

Mon, 04/18/2011 - 18:23 | 1182013 max2205
max2205's picture

Just wait till Obummer's second term. Weeee

Mon, 04/18/2011 - 18:26 | 1182014 redpill
redpill's picture

 (near zero borrowing costs from non-zero lending through mortgage, personal loans, credit cars, or whatever)

I would hope that more Americans could at least understand this singular point and get pissed off.  The Fed is inflating our currency, which is back-door stealing from every American, just so it can give money to large banks for NOTHING in order for them to turn around and lend it out and MAKE INTEREST on the same people, us, that are getting stolen from via inflation to make the whole thing possible.  The vampiric atrocity of it should make everyone's blood boil regardless of what part of the political spectrum they hail from.  Why in the world should banks be making a penny when they have to take no risk?

 

Mon, 04/18/2011 - 18:29 | 1182037 LawsofPhysics
LawsofPhysics's picture

Yep,  spot on.  for that matter, we would we let a private banking cartel charge us excessive interest to print or money for us when we can coin it ourselves?

The financial sector (which creates NOTHING of real value) remains a cancer that is killing the productive sectors of the economy through excessive debt and fraud.

Crash the system, crash it now.  The sooner we do, the sooner compensation will find its way to folks that are actually worth a shit.

Mon, 04/18/2011 - 19:11 | 1182121 mark mchugh
mark mchugh's picture

Yep.

Mon, 04/18/2011 - 19:42 | 1182193 What does it al...
What does it all mean's picture

I had a good argument with a close friend of mine who is working for one of the TBTF banks. (as a MD.)  I suggest that we, the US Tax payers, demand a system like what they have in Japan for payment processing and simple savings.  

 

Who the hell need "banks", that doesn't give out loans?  For their insider trading / prop desk / Public offering?  Investment advisory expertise?  (Really, Lehman was an IB, expert at saving corporations, and it failed spectacularly!)

Just throw it all up on EBAY, and see what auctions and what doesn't.

 

Mon, 04/18/2011 - 18:39 | 1182064 IdioTsincracY
IdioTsincracY's picture

For all tea party revolutionaries around here, straight from our founding fathers:

I believe that banking institutions are more dangerous to our liberties
than standing armies. Already they have raised up a moneyed aristocracy
that has set the government at defiance.

Mon, 04/18/2011 - 18:24 | 1182020 rubearish10
rubearish10's picture

So, does The FRED just hike rates tomorrow and force the issue into sobriety? ugh! Just kidding, just kidding.....

Mon, 04/18/2011 - 18:28 | 1182025 long juan silver
long juan silver's picture

Geithner? He still working here? Robert Stack knows more than him.

Mon, 04/18/2011 - 20:08 | 1182252 knukles
knukles's picture

Yeah, the Elliot Ness guy!

Mon, 04/18/2011 - 18:26 | 1182026 LawsofPhysics
LawsofPhysics's picture

Hmm.  Run to PMs and cash and await default? Check.  Then come back when treasury yields are above 20%.  Maybe, depends on the inflation rate I guess, this is the bit I am not sure of just yet.

Mon, 04/18/2011 - 18:26 | 1182027 Dr. Porkchop
Dr. Porkchop's picture

Tim is guilty of treason. It's that simple. If you see something, say something.

Mon, 04/18/2011 - 18:37 | 1182053 DoChenRollingBearing
DoChenRollingBearing's picture

LOL.  Good one!

Mon, 04/18/2011 - 23:44 | 1182850 Al Gorerhythm
Al Gorerhythm's picture

Or substance abuse. That last tab must have been a wild one.

Mon, 04/18/2011 - 18:26 | 1182028 smlbizman
smlbizman's picture

i really do love the spin.......from christina ( i had a pig-neck-ectomy} romer...christ this aint news...everybody knows were broke...s&p is just figuring it out...

Mon, 04/18/2011 - 18:48 | 1182078 Rainman
Rainman's picture

...even to this very day, that no-neck Romer refers to the lack of jobs as " cyclical" unemployment. Banished to Berkley, she should never be heard from again outside that rat's nest of commies. 

Mon, 04/18/2011 - 23:30 | 1182831 WonderDawg
WonderDawg's picture

I don't think the S&P is just figuring it out, they've known just like everyone else knows. The thing I'm trying to figure out is how the TBTF cartel benefits from this? What's the play? It's obvious (to me) that the S&P puppets were told to do this, but why? Figure out how the cartel benefits from this, and make your play accordingly. Any ideas?

Mon, 04/18/2011 - 18:38 | 1182030 Zero Govt
Zero Govt's picture

today Timmay Gitner would have us believe digging a deeper debt hole by raising the debt ceiling was great for the "credability" of the USA and a brilliant fiscal "solution"

tomorrow Obumma is going to make us understand how not 3 foreign wars but 7 (or 8) is fab US foreign policy and a Nobel Peace Prize winning strategy

Barney Frank next week's going to ignore the fuking shambles he's made of US property and unveil his central planning for the rental sector (Mission: Sub-Prime Rent)

and the Marxist goon squad (Obummas Science and Energy Czars) who've already declared "War" on the worlds greatest airborne plant fertilizer (CO2) is going to ban offshore drilling (having banned onshore and shallow water) and run what's left of US industry on subsidised popcorn oil extract

Things can only get better with the 'experts' we've got in The White House!

Mon, 04/18/2011 - 18:57 | 1182099 topcallingtroll
topcallingtroll's picture

Socialists and those who envy the possessions of other people really hate your ass zero.

You get almost as many junks as me, and you make it look so easy, like you arent even trying.

Mon, 04/18/2011 - 19:06 | 1182115 Zero Govt
Zero Govt's picture

they can hate my ass and they can kiss it too

fuking wasters with fat gobs running on empty throughout human history ...bring on the Great Depression, its Darwinian Selection Time   ;)

Mon, 04/18/2011 - 19:08 | 1182120 topcallingtroll
topcallingtroll's picture

Woohoo!

Party time, Darwin style...much better than reality.tv. we bring the emtertainment right to your very own living room.

Tue, 04/19/2011 - 06:44 | 1183206 buzzard
buzzard's picture

One little nit... When you finally see the damage from the build-up of CO2 (assuming you live that long) will you then admit that you were wrong about Global Warming?

Mon, 04/18/2011 - 18:28 | 1182034 disabledvet
disabledvet's picture

"the American people are getting killed" and "they're responding in kind."  And how many people want to be the next President?  A dozen?  No thanks.  "I'll take the money and a mai-tai on the beach."

Mon, 04/18/2011 - 18:31 | 1182041 LawsofPhysics
LawsofPhysics's picture

I agree.  Just add my own like-minded brothers in arms as a security team and lets take an island back from a banker.

Mon, 04/18/2011 - 18:50 | 1182081 I am Jobe
I am Jobe's picture

Elections in the USA is like shopping at a supermarket. Paper or Plastic.

Useless , just pour me several drinks and turn on some TV and watch tits on GE Channel

Mon, 04/18/2011 - 19:00 | 1182104 Breaker
Breaker's picture

""the American people are getting killed" and "they're responding in kind."  And how many people want to be the next President?  A dozen?  No thanks.  "I'll take the money and a mai-tai on the beach.""

The next presidency is going to be a poison pill. We had big problems in 2008. It's obvious that 2008-2012 is going to be governed by doing whatever is necessary to move the problem to after 2012, regardless whether that makes the problem much worse. The next president probably will run out of the ability to kick the can down the road and will have to oversee a great depression. If it's Obama or HRC, it'll be funny to watch the press dance around to avoid labeling them "Herbert Hoover." But if it's a Republican, it'll be HOOVER^6.

Mon, 04/18/2011 - 20:58 | 1182398 Landrew
Landrew's picture

O'Bummer is Hoover! I doubt O'Bummer gets a second chance at the can. He bumbled when he missed the chance to tax the 1% at the rate of 1995. When O'Bummer bailed out his friends on Wall Street that was his hand and a weak one at that. To show how weak O'Bummer really is, his first fund raiser wasn't of the people, it was for the 1% at 35k a plate! Imagine how his voter base felt when they discovered he only cared about the very richest people in the world! O'Bummer is done, screwed by his greed and failure to do both cut spending across the board and increase taxes on the very richest people in the WORLD! Corporations are people until they want to pay their taxes in Ireland or Denmark at 12%! Why does WARREN BUFFET (Mr. Potter)pay only 16% tax rate? Why do workers hate workers? Why do the unemployed cheer when REPUBLICANT'S and DUMMYCRATES take money from GOLDMAN SACKLESS, cheer the the gift of trillions to the health care insurance complex, military industrial complex? Logic plays no roll in what's coming. Workers that hate workers and not the rich slave masters. DO we have a slave mentality in this country now? How about it CD, do we have a slave mentality? Oh, master I will pay more taxes then you, I will have lesser schools, I will live with more expensive health care, if you master say so. SLAVES we are slaves to the BANKSTERS. REPUBLICANT'S will win in 1212 and finish the job O'Bummer started. Hoover was far better than the choices we have. Hoover started the Hoover damn, Golden Gate bridge, St. Lawrence seaway, jobs!

Mon, 04/18/2011 - 21:49 | 1182536 DoChenRollingBearing
DoChenRollingBearing's picture

Great rant, Landrew.

Although we have very different views, I will share personal anecdotal evidence that Owebama has been a disappointment to the Dems, Progressives, Lefties, liberals, whatever.  I know several people who had high hopes that Owebama would change things, and it is pretty clear that he serves the top 1% as well (I am lucky, but not lucky enough to be in that 1%).

I did not know that fact about O having the $35,000 / plate dinner...  I would have had great fun with my liberal friends if I had known earlier.

I feel the same loathing for Mr. Buffett as you (and probably most here at ZH) do.  Back 10 - 20 years ago, he really seemed like a "great investor", an oracle, adding value for the little guy, which to be fair he sort of did for quite sometime.

Mon, 04/18/2011 - 18:28 | 1182035 velobabe
velobabe's picture

from a layman's point of view. heist of the 21st century. it really is about what they did not say, it seems.

great piece nomi, glad you are on board zerohedge.

nomi prins, bitchez†

 

Mon, 04/18/2011 - 18:36 | 1182047 redpill
redpill's picture

And not to be a chauvinist but she is awfully easy on the eyes.

Mon, 04/18/2011 - 19:44 | 1182195 Blano
Blano's picture

Had I known she was that cute, I wouldn't have been so harsh about her prior posting on here.

Mon, 04/18/2011 - 19:51 | 1182210 Bob
Bob's picture

http://www.nomiprins.com/thoughts/2011/4/18/captain-obvious-sp-vs-captai...

Damn, I like that look.  I'd do that. 

As long as the mind comes along for the ride, it could work. 

Ah, fantasy life. 

Mon, 04/18/2011 - 21:24 | 1182463 Blano
Blano's picture

Line starts behind me, Robert.  : )

Mon, 04/18/2011 - 21:44 | 1182524 Bob
Bob's picture

Sounds like a different fantasy to me, Blano. 

Tue, 04/19/2011 - 02:35 | 1183096 ZeroPower
ZeroPower's picture

Boy are you whipped. How is it chauvinistic to say the broad is smokin?

Mon, 04/18/2011 - 18:43 | 1182070 Ransom
Ransom's picture

Nomi of Goldman Sachs and Bear Stearns fame.

Mon, 04/18/2011 - 18:43 | 1182075 redpill
redpill's picture

She and Blythe are featured in the "Bad Hotties of Finance" calendar.

Mon, 04/18/2011 - 20:04 | 1182240 cosmictrainwreck
cosmictrainwreck's picture

yeah, that's what bio sez....managing director, no less, for GS and headed Int'l Analytics for Bear...looks awful young for that (compare Blythe). I think she's using an old photo, or air-brushed

Mon, 04/18/2011 - 22:01 | 1182557 tom a taxpayer
tom a taxpayer's picture

Imagine the pillow talk she could recount.

Mon, 04/18/2011 - 18:43 | 1182048 SheepDog-One
SheepDog-One's picture

Way too many people are actually believing their own hype theyve been pumping for a couple years, thusly they have gone 'full retard', and everyone knows you NEVER go full retard! YouTube - Full Retard

Disaster next.

Mon, 04/18/2011 - 19:43 | 1182184 Kayman
Kayman's picture

For:

 slewie the pi-rat

everyone is auction-to-auction,
full retard is in full bloom,

So bang the walls, and hold your balls,

Until Bernanke leaves the room.

Thanks for the lead-in. This economy rises or falls on the Fed and so-far all that Bernanke has done is to lead us back to the fall of 08; except private debt is now public and manageable is no longer manageable.

Mon, 04/18/2011 - 18:38 | 1182057 LawsofPhysics
LawsofPhysics's picture

It took over 40 years of careful market and policy manipulation, wars, murders, gradual deregulation, and general taxpayer rape to get us here.  There is no road back to a righteous and noble path now.  It was okay when one country was insolvent, now more than half the world is.  The tipping point is well passed.  

Mon, 04/18/2011 - 21:04 | 1182410 Landrew
Landrew's picture

Bravo! Bravo! Well said my friend! I really do believe we have a new slave mentality here?

Mon, 04/18/2011 - 18:42 | 1182072 Eireann go Brach
Eireann go Brach's picture

Unqualified, inept, too inexperienced, absolutely fucking useless, way over ones head..Geitner and Obama

Mon, 04/18/2011 - 18:56 | 1182094 augie
augie's picture

no sense crying over spilt milk. Even more so when you weren't the one that spilled it.

Mon, 04/18/2011 - 18:42 | 1182074 IdioTsincracY
IdioTsincracY's picture

Tipping point .... I'll give you the tipping point:

There is not enough money in the wolrd to pay the world debt

http://www.economist.com/content/global_debt_clock?page=8

Mon, 04/18/2011 - 19:12 | 1182128 Zero Govt
Zero Govt's picture

interesting Map that showing the public debt the scum of politics have wracked up per person in each country ....Ye Olde Western world (US, Europe and Japan) looks pretty fuked with average £30-$35,000 per person though it may have been even more interesting if the debt was devided and attached to the actual politicians that ran up the debt for them to pay off (because i for one ain't)

another interesting figure is there's something like $17 trillion of debt to be roled over worldwide between 2012 and 204 and only $13 Trillion (tops) to go around (if creditors are in the mood to do so which i doubt!). Anyone not heard of deflation will know about it in the next few years! 

Mon, 04/18/2011 - 18:47 | 1182079 buzzsaw99
buzzsaw99's picture

I should have bought agency bonds. At least I would have gotten my money back by now. Ironic when you think about it.

Mon, 04/18/2011 - 18:49 | 1182084 topcallingtroll
topcallingtroll's picture

Who were those masked men?

Why......it's captain obvious and captain oblivious.

They are going to give the evil china mastermind Dagong his just desserts!

Mon, 04/18/2011 - 18:54 | 1182088 tj3
tj3's picture

And interest rates have always been zero.

Mon, 04/18/2011 - 18:57 | 1182095 bob_dabolina
bob_dabolina's picture

Geithner is such a god damn pussy and he has been the purview of everything that is fucked up fiscally in this country. 

Think about it, and really let this ferment. This is the guy who was the head of the NY Federal Reserve Branch and literally was the chief overseer of the big banks and GSEs. He oversaw the complete collapse of the banking system only to be put in charge of the United States finances. Now the United States in so much debt it is irreparable in any of our lifetimes and will lead to consequences so dire for our children it is unconscionable.

Now he is saying that we need more debt? I can't believe this, this is so far out of the realm of reason that that I'm choking on the magnitude of it. I think we need to default on our debt, and yeah it will be shitty, but not as shitty as defaulting on even more debt we can't pay back...aren't there any legislators with enough balls to say "enough is enough, the party is over"?  It's not like the world has any respect for the United States anymore anyway, what is there to lose? 

I guess I never thought this country would be in such an emarrasing state of affairs. I don't know how anyone could feel proud to be an American. 

Mon, 04/18/2011 - 19:03 | 1182111 topcallingtroll
topcallingtroll's picture

When are we going to have the first zero hedge meet and greet?

I cant wait to face off against the eurosnobs.

And i would love to see tmosley and robo go.after it.

Plus the next round is those who love america versus those who pray for collapse.

And who could.forget the zionist anti zionist battles? Those were so fun we ought to save those.for last.

Mon, 04/18/2011 - 19:10 | 1182119 bob_dabolina
bob_dabolina's picture

Those who love America have already seen the collapse:

-3 Wars not declared by congress

-Half of Americans pay no tax (yet look at the debt)

-The government dictates everything (yes, in some places you can't even send your kid to school with lunch...it's banned, your kids HAVE to eat what the school says...)http://news.yahoo.com/s/yblog_thelookout/20110411/us_yblog_thelookout/chicago-school-bans-homemade-lunches-the-latest-in-national-food-fight

-Nationalized banking system

...and just everything else, I can't even touch the tip of the iceberg here.

Mon, 04/18/2011 - 19:14 | 1182127 topcallingtroll
topcallingtroll's picture

Maybe we will have to further refine the Those Who Love America category to reflect the various nuances and subdivisions.

Mon, 04/18/2011 - 19:21 | 1182149 Zero Govt
Zero Govt's picture

Bob  -   Chicago schools banning homemade lunches, pretty typical from the area code of the Marxist US President. Meanwhile New York micro-manages eateries banning compimentary nuts on bars and dictating the size of holes in salt shakers

Here in the Communist State of Britain the Health & Safety nazis shut any private food businesses within up to 200 meters of schools so as not to compete with the shit the State wants to put down kiddies throats

The Totalitarian State has found a taxpayer funded wonderland in our beloved institution loosely called 'democratic government'  

Mon, 04/18/2011 - 19:39 | 1182173 bob_dabolina
bob_dabolina's picture

Seriously. 

And think about all the god damn cameras everywhere (they're even there in the UK all over the place) and little children getting molested at the airport...yea all for my safety. And now add the Patriot Act + Guantanamo into the mix and you'll see how truly sick and fucked up this country has become. 

1984 on steroids.

oh...but...if we don't raise the debt ceiling the country will collapse. 

PLEASE, let it collapse....PULL ZE PLUG!!!! It's gotten grotesquely enormous, let it die.

Mon, 04/18/2011 - 20:01 | 1182226 Bob
Bob's picture

So you "don't love America," then?  JHC. 

Mon, 04/18/2011 - 20:40 | 1182319 bob_dabolina
bob_dabolina's picture

I love freedom and individual liberty, concepts that America once stood for.

I don't feel America reinforces those concepts any longer.

It's not really a question of whether or not I love America, my feelings are really a statement of shame and embarrassment for what it has become.

This clips says quite a bit:

http://www.youtube.com/watch?v=k2iiirr5KI8&feature=player_embedded

This is a man who helps to draft law. Not only did he say "I don't care about the Constitution" but he also confuses the Constitution with the Declaration of Independance.

Mon, 04/18/2011 - 20:42 | 1182342 Bob
Bob's picture

It's sad, but it is what it is.  It wasn't my idea, either. 

Mon, 04/18/2011 - 21:36 | 1182501 Dave
Dave's picture

The original idea of America yes. The current United States. No.

Mon, 04/18/2011 - 19:22 | 1182153 Rainman
Rainman's picture

...and .gov subsidizes the manufacture of the most outstanding weapons for export so that the volatile, desperate and crazy may be even more capable of vaporizing the world. It is hard to love today's Merika !!

Mon, 04/18/2011 - 21:21 | 1182455 Ned Zeppelin
Ned Zeppelin's picture

Geithner was picked precisely because he is a simpering, servile dweeb. 

Mon, 04/18/2011 - 18:54 | 1182096 Strategery
Strategery's picture

Be careful what you say, the new line on CNN is to call anything that attacks the status quo a 'conspiracy theory.'

Mon, 04/18/2011 - 19:05 | 1182116 topcallingtroll
topcallingtroll's picture

Report to your nearest security center immediately for your brain upgrade.

Mon, 04/18/2011 - 19:01 | 1182108 AldoHux_IV
AldoHux_IV's picture

More debt to solve the problem of a broken system is not the answer.  It is illogical and idiotic at best borderline insane and reckless.

Mon, 04/18/2011 - 19:09 | 1182118 I am Jobe
I am Jobe's picture

Someone please pour me a tall drink. Buy lots of vaseline for US Citizens.

China Must Cut Foreign-Exchange Reserves, PBOC’s Zhou Says

http://www.bloomberg.com/news/2011-04-18/china-must-cut-foreign-exchange...

Mon, 04/18/2011 - 19:17 | 1182136 lesterbegood
lesterbegood's picture

Cry babies cry....

Perhaps ones time is better spent finding solutions rather than whining about how the criminals are screwing you?

Solutions found here:

http://republicfortheunitedstates.org

http://gsfsystem.ch

Mon, 04/18/2011 - 19:25 | 1182150 Miles Kendig
Miles Kendig's picture

Nomi Prins channels her inner drill sergeant.  Woot!!!!!!  This Ranger is impressed

http://youtu.be/FNhYJgDdCu4

Mon, 04/18/2011 - 19:21 | 1182151 Milton Waddams
Milton Waddams's picture

"[AIG] had real companies operating businesses that were generating huge amount of earnings over time, huge market share.  Lehman, was like, you know, it was like a, uhm, bunch of people."  - Treasury Secretary Tim Geithner

Mon, 04/18/2011 - 19:46 | 1182201 velobabe
velobabe's picture

w a k e   t h e    f u c k   u p^  people†

Mon, 04/18/2011 - 19:47 | 1182204 Everybodys All ...
Everybodys All American's picture

Where is the president? Where is the leadership on this? I thought this president would solve this problem. Two plus years in and it looks like Obama has been a complete failure. How can he keep Geithner? I really am ashamed for the two of them.

Mon, 04/18/2011 - 20:01 | 1182230 I am Jobe
I am Jobe's picture

Shows that in the USA if you have friends in high places you can be anything or anyone you want. So much for morality , ethics and leadership and grades. All you need is someone to pull you in and yeap then it is the gravy train.

Mon, 04/18/2011 - 20:12 | 1182264 cosmictrainwreck
cosmictrainwreck's picture

so true....and they're all so brazen about it; just git up there and act like ya know what yer doin'. then there's the banksters, who out-shine them 100% in the right-out-in-the-open, in front of God & everybody, audacity department. New World Order, I guess. NWO Motto: "FUCK Ya! Harharhar"

Mon, 04/18/2011 - 21:48 | 1182530 Dave
Dave's picture

There is no "New World Order". It's the same "Old World Order" just putting it in deeper.

Mon, 04/18/2011 - 23:47 | 1182853 WonderDawg
WonderDawg's picture

How can he keep Geithner? Are you kidding? He appointed him! To do exactly what he's doing! I'm sure Hopey the Clown didn't pick him all by himself, he was told to appoint him. Hopey doesn't know enough about anything to actually make his own decisions, except maybe organizing a neighborhood clean-up, which would probably favor whatever local shopowners' association lined his pocket with a little walkin around money.

Mon, 04/18/2011 - 19:55 | 1182219 Downtoolong
Downtoolong's picture

The debt ceiling is starting to resemble a New Year resolution or an alcoholic's one last drink. What's the point of even claiming it if you're going to break your promise before its first anniversary?

Mon, 04/18/2011 - 21:07 | 1182421 Rusty Shorts
Rusty Shorts's picture

Cheers!!!

 

 

burrrrrp.

Mon, 04/18/2011 - 20:09 | 1182262 Tic tock
Tic tock's picture

I dunno, while I'm thankfull the US is no longer an ascending economic force -and that white people are thought of as lying, cheating fools- I suspect that the real source of the cancer are the transnational interest groups, Defense, Telecoms, Banks and the other really huge corporates.

 I mean, the really big shareholders are concerned about 'market share' - state administrations are what.. even CentralBanks are just itsy govt. offices. And govt. can't operate unless the corporates agree to support them; govt.s are just toys in these guys' hands. For me, Big Shareholders' - these represent Capitalism. Fine. Capitalism is supposed to organise resources efficiently - I'd say that it's done that. But I could be wrong, so what are the arguments for big shareholders, institutonal investors, pensions?

Or, I could have it confused. This could be simply a bad goverment effect - because while companies can lower prices while expanding output, the same cannot be said of government which continually raises taxes. Perhaps what we really need is serious re-think of how government funds itself. Whatever it is, there isn't a functioning legal system, so, it's a moot point.

Mon, 04/18/2011 - 20:23 | 1182311 Bob
Bob's picture

Dear T. Tock:

It sounds like you are a foreigner and/or a person of color darker than what passes as "white."  Congratulations.  Could you quiet down your chickens, btw--I bet you don't even have zoning laws yet, [snicker]!

We would simply like to call to your attention the attached Order For Garnishment.    It is truly white.  And, contrary to your doubts, it is deadly serious in its impact.

We all must pay our bills. 

Thank God! for a fully functioning legal system. 

 

Best Regards,

The Management

Mon, 04/18/2011 - 20:25 | 1182306 PulauHantu29
PulauHantu29's picture

I watched as the TEPCO CEO apologized to all the irradiated Japanese he lied to....my friend said,"Japanese culture is so different then American. If he were here in America he would be grabbing his $15 Million Q1 Bonus right now instead of apologizijng...strange culture those Asians."

For example:

"Morgan Stanley Fund Defaults on $3 Billion Tokyo Real Estate Deal

via Reuters:

TOKYO (Reuters) – A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone (BX.N) and other investors, the largest repayment failure of its kind in Japan.

Taking advantage of a run-up in property prices, MSREF V refinanced its debt on the Shinagawa property in 2007 with new debt worth 278 billion yen, twice the value of its purchase and likely yielding a tidy profit for the fund.

The refinanced debt was sold in six different tranches by Morgan Stanley to investors.

http://news.yahoo.com/s/nm/20110415/bs_n...

James Gorman, the CEO of Morgan Stanley, saw his 2010 compensation rise to $15.2 million from $6.5 million in 2009, according to an Associated Press analysis of data filed with regulators."

http://www.businessweek.com/ap/financial...

Mon, 04/18/2011 - 20:28 | 1182314 I am Jobe
I am Jobe's picture

U.S. Banks Financing Mexico Drug Gangs Admitted in Wells Deal

https://www.youtube.com/watch?v=ZLf3ax3Ie9o&feature=player_embedded

Mon, 04/18/2011 - 20:49 | 1182369 cosmictrainwreck
cosmictrainwreck's picture

old news (June 29), but whatya think the tab in laundered money has run since, oh, say, July-Aug, after the dust settled? Where's Matt Taibie? Love it the way Wells said Wachovia "failed to report....." Fuckin' lawyers

Mon, 04/18/2011 - 21:22 | 1182451 Ned Zeppelin
Ned Zeppelin's picture

Geithner, Paulson, and Bernanke are all traitors. If there is a god, perhaps their time e will come. 

Mon, 04/18/2011 - 21:44 | 1182516 QQQBall
QQQBall's picture

Better check and see if that;s on Lloyd's to-do list.

Mon, 04/18/2011 - 21:59 | 1182558 Dave
Dave's picture

This will not end well. But is is fascinating and I hope to be around long enough to see how it shakes out. Nature will balance. Perhaps that is what we are witnessing. Bueno surete todos.

Mon, 04/18/2011 - 23:58 | 1182873 Re-Discovery
Re-Discovery's picture

I am exclusively a holder of physical metals in Canada but view myself as a parasite who selfishly hopes the host never dies.   I idealize a new fiat system akin to tally sticks, seashells or gold where today's truth always trumps future promises.   However, holders of PMs should understand our parasytic position and seek a gradual REGRESSION to former monetary systems and not a collapse.  And the slower it occurs the better for our survival. 

None of us is completely prepared forr the likely media of exchange in a  collapsed fiat system.  They are water, available food, seeds, livestock, medecine, hallucinogens (sp?), women and/or men (i.e. slaverry), weapons, ammunition, etc. and this would be merely for subsistence.  Only tens or hundreds of years later would engineering create enough leisure necessary for a new fiat system. 

I am in favor of an eyes-wide-open RE-DISCOVERY of price and value in our economy which sustains as much of the "valuable old" as possible while transitioning to a system which I believe is inevitable.  A renaissance without a darrk ages. However, as I know nothing of cold fusion or some other valuable leap ahead in technology, I am content to reside as a parasite in the currrent system and wait until PMs explode and provide the opportunity to re-invest in something real.  In fact, when that occurs, I am almost scared that I won't be worthy of the new system and will whither and fade as it re-discovers those who add value and those who merely attach themselves to societal advance. 

If I am indeed discarded at that point, however, I will be content that my complete investment in PMs at this point in time will have been my contribution to a better system.  And I hope to pass along to the next generation how vapid the life of a parasite is and how much better their future will be.

Most investors now reside comfortably in a "flat earth" investment context.  They will soon come to realize that the wordl is a much bigger, rounder, fearsome, beautiful, complex, terrible place than they ever imagined where most will deservedly perish and the few will survive to tell the story of the vanity and foolishness of men. 

 

Mon, 04/18/2011 - 23:56 | 1182875 Re-Discovery
Re-Discovery's picture

I am exclusively a holder of physical metals in Canada but view myself as a parasite who selfishly hopes the host never dies.   I idealize a new fiat system akin to tally sticks, seashells or gold where today's truth always trumps future promises.   However, holders of PMs should understand our parasytic position and seek a gradual REGRESSION to former monetary systems and not a collapse.  And the slower it occurs the better for our survival. 

None of us is completely prepared forr the likely media of exchange in a  collapsed fiat system.  They are water, available food, seeds, livestock, medecine, hallucinogens (sp?), women and/or men (i.e. slaverry), weapons, ammunition, etc. and this would be merely for subsistence.  Only tens or hundreds of years later would engineering create enough leisure necessary for a new fiat system. 

I am in favor of an eyes-wide-open RE-DISCOVERY of price and value in our economy which sustains as much of the "valuable old" as possible while transitioning to a system which I believe is inevitable.  A renaissance without a darrk ages. However, as I know nothing of cold fusion or some other valuable leap ahead in technology, I am content to reside as a parasite in the currrent system and wait until PMs explode and provide the opportunity to re-invest in something real.  In fact, when that occurs, I am almost scared that I won't be worthy of the new system and will whither and fade as it re-discovers those who add value and those who merely attach themselves to societal advance. 

If I am indeed discarded at that point, however, I will be content that my complete investment in PMs at this point in time will have been my contribution to a better system.  And I hope to pass along to the next generation how vapid the life of a parasite is and how much better their future will be.

Most investors now reside comfortably in a "flat earth" investment context.  They will soon come to realize that the wordl is a much bigger, rounder, fearsome, beautiful, complex, terrible place than they ever imagined where most will deservedly perish and the few will survive to tell the story of the vanity and foolishness of men. 

 

Tue, 04/19/2011 - 01:10 | 1182989 Long Silver Johnson
Long Silver Johnson's picture

Don't forget Captain Oblivion: Fake Penny Benny

Tue, 04/19/2011 - 08:31 | 1183373 Jessica6
Jessica6's picture

That's one thing that's really been bothering me about this past couple of years. While Bernanke deserves the bad press he's been getting this clown has gotten off scott free pretty much everywhere.

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