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Tim Geithner Top Tick Op-Ed #2: "A Rescue Worth Fueling"

Tyler Durden's picture




 

About a year after Tim Geithner literally top-ticked the economy with his first Op-Ed, "Welcome to the Recovery", which came days ahead of the QE 2 announcement, he has just released his Op-Ed #2 "A Rescue Worth Fueling" in the WaPo, in which he praises the administration for using billions in taxpayer capital to save a few hundred thousand union jobs. His bottom line: "The domestic automakers are getting stronger. For the first time since 2004, each has achieved positive quarterly net income." Perfect release timing: just as both GM and Ford announce a drop in monthly sales, and GM discloses record channel stuffing. If there is one call to fade and short all the US automakers, this is it.

A rescue worth fueling, published in the Washington Post

On June 1, 2009, General Motors filed for bankruptcy,
backed by $30 billion in support from the federal government. The same
day, in the same New York courthouse, a judge approved Chrysler’s plan
to forge an alliance with Fiat and emerge from bankruptcy as a
restructured business with an uncertain future.

Two years later, all three American automakers have returned to
profitability, the industry has added new shifts and 115,000 jobs, and
GM and Chrysler have returned more than 50 percent of the government’s
investment. The industry is mounting one of the most improbable
turnarounds in recent history.

This outcome was anything but
assured. In December 2008, the industry faced the prospect of
uncontrolled liquidations just as our financial system was reeling from
the worst financial crisis since the Great Depression. President George
W. Bush provided more than $17 billion in temporary loans to GM and
Chrysler to avert that disaster, but those efforts, while important,
were not enough. President Obama took office faced with an industry that
was burning and had to determine whether additional government support
made sense.

In a series of meetings in early 2009, the
administration’s autos team sought to examine an interwoven web of
options and to highlight the risks each entailed. The companies needed
to make dramatic changes. Years of bad decisions had caused them to
progressively lose market share to foreign competitors, and the
financial crisis had dried up financing for almost everything,
compounding the collapse in demand for vehicles. It was not clear
whether there was a responsible way to put taxpayer dollars on the line
in a way that helped ensure the companies emerged stronger, not weaker.

The
challenges extended beyond GM and Chrysler. The restructuring of these
automakers could affect companies throughout the supply chain that
employed nearly 400,000 American workers. Ford and other automakers
depended on those suppliers, increasing the risk of damage if they
liquidated or moved overseas. With the credit markets frozen and no
major sources of private financing available, government inaction meant
devastating liquidations. Nonetheless, even a federally supported
bankruptcy could aggravate the situation by causing car buyers to lose
confidence. And the automakers realistically could have taken a long
time to emerge from bankruptcy. In the balance hung thousands of auto
dealerships nationwide and small businesses in communities with
concentrations of auto workers.

It was the uniquely deep linkages
between the auto companies and suppliers, dealers and communities that
led some experts to estimate that at least 1 million jobs could have
been lost if GM and Chrysler went under.

Ultimately, the most
difficult decisions centered on Chrysler, which was ailing even more
than its larger counterparts and was, we determined, no longer viable as
a stand-alone company. The choice was backing Chrysler’s effort to
partner with Fiat or letting the company fail. A rich internal debate
ensued. Our team presented the president with a range of stark options,
including the fact that standing behind Chrysler’s restructuring still
gave only a slightly higher than 50 percent chance of long-term success.

Nothing about the president’s call was popular. It may have been
more politically expedient to let Chrysler fail. But the president knew
that if Chrysler collapsed, tens of thousands of jobs would have been
shed in the near term — a body blow to an economy already on the ropes.

In
return for government support, we demanded tough concessions from
Chrysler and from GM — substantially tougher than had been proposed
before. They were forced to go through bankruptcy, clean their balance
sheets and adopt stringent plans to move toward profitability. We gave
the companies enough space to make sound business decisions and push
ahead as they would in a private restructuring. That meant sacrifices
across the board — from managers, unions, stockholders, creditors and
dealers. These investments offered Chrysler and GM a second chance but
also helped the workers, communities and suppliers depending on them.

Today,
six years earlier than planned, Chrysler has repaid its outstanding
government loans. While it has a long way to go, Chrysler has made
enormous strides. Tough decisions, stemming from the restructuring, have
helped Chrysler post five consecutive quarters of operating profit.
It has announced more than $3 billion in investments in plants and
technology since emerging from bankruptcy and is poised to hire back
workers.

The story has been similar for GM — and the industry as a
whole. The domestic automakers are getting stronger. For the first time
since 2004, each has achieved positive quarterly net income.

While
it remains unacceptably high, Detroit’s unemployment has fallen nearly
one-third over the past two years. The car companies are leading a
comeback in American manufacturing. And while we will not get back all
of our investments in the industry, we will recover much more than most
predicted, and far sooner.

What happens next for Chrysler and GM
is up to their executives, managers and workers — just as with any other
company. We cannot guarantee their success, and at some point they may
stumble. But we’ve given them a better shot. The choice to stop the
American automobile industry from unraveling was the right one.

The writer is secretary of the Treasury.

 

 


 

Apparently, the secretary of the Treasury is not only familiar with the US tax code, but with the definition of Channel Stuffing.

 

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Wed, 06/01/2011 - 13:08 | 1329355 John McCloy
John McCloy's picture

I dont understand. If we are already in the recovery and it was not just the result of dollar devaluation and 2.5 QEs than why do we need more fake recovery for a false economy? Wont that only put us in an even more dire situation next year?

 The real answer is that YES..they know this but if they can use magical printed dollars to pass the responsibility on to another group of officials or elected than that is all they are concerned about.

Wed, 06/01/2011 - 13:07 | 1329366 ParaZite
ParaZite's picture

The banks simply haven't finished their looting. They got caught in foreclosure fraud, etc... all extending the time line until they could own all residential property in the USA via worthless fiat, while the worker drones and slaves paid for it all with the sweat of their brow. 

QE3 will pass, the market will collapse, and the US Taxpayer will be stuck with the repayment of a debt they DID NOT WANT. 

Wed, 06/01/2011 - 13:13 | 1329384 max2205
max2205's picture

Funny, auto's are like, what, 5% of gdp...and they are zombies to boot

Wed, 06/01/2011 - 13:21 | 1329437 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Timmah writes garbage.  Where did he pull his stats from?  Unemployment in Detroit has improved?  GM has turned profit?  Unbelievable propaganda.

Wed, 06/01/2011 - 13:31 | 1329463 flacon
flacon's picture

Reminds me of: [The recovery is] "too young to die" mantra from a few days ago. 

Wed, 06/01/2011 - 13:35 | 1329496 redpill
redpill's picture

The deflationary movement in stocks today is going to make Timmay and Uncle Ben extremely cranky.

 

At this point they might as well just outlaw selling.  Essentially that is the underlying message of their policies anyway.

 

Wed, 06/01/2011 - 17:10 | 1330374 Poor Grogman
Poor Grogman's picture

Why not?

In late Roman times it was made illegal to abandon your farmland or turn yourself into a slave.

You were forced to continue supporting the kleptocrats, under threat of state sanctioned violence.

That's what it usually comes to in the end...

Wed, 06/01/2011 - 21:33 | 1331097 knukles
knukles's picture

And those who flaunted and befouled Caesar were crucified along the Appian highway, for only Caesar was annointed to accomplish Caesar's Works.

Wed, 06/01/2011 - 13:16 | 1329392 DaveyJones
DaveyJones's picture

Ah, fraudclosure. The third branch of government has completely fallen to the same folks.  

Wed, 06/01/2011 - 14:39 | 1329694 Noah Vail
Noah Vail's picture

Yeah, screw it, we don't need no stinkin' auto industry. That's what we got China for. Can't wait for the new 2012 Xingtrang to come out. I can buy it with my worth less dollars. Don't get much, but whatdaya expect?

Thu, 06/02/2011 - 07:13 | 1331714 Urban Redneck
Urban Redneck's picture

Actually the US doesn't need an auto industry- the prevention of adopting all that "super secret super high efficiency" engine technology isn't a conspiracy by big oil it is a conspiracy between the DNC and UAW.  Between the Chinese (Volvo V60) and the Germans (Volkswagen X1) Comrade Obama could have licensed the technology for a 150mpg 4 door and 300mpg 2 door diesel electric hybrid, inaugurated an Effiency for Clunkers program...but instead he chose to spend billions of US taxpayer dollars replenishing the coffers of the UAW which worked so hard to get to him elected, and condemning Americans to a future of Zaz Volts.

 

 

Wed, 06/01/2011 - 13:58 | 1329578 Smiddywesson
Smiddywesson's picture

Rather than explaining their actions as an effort to kick the can down the road and blame the other side, I believe they are giving the bankers the time they need to put their plan into action.  That plan is a gold standard that will really stick it to anyone who is a saver.  they don't care if these savers are angry, because they are outnumbered by the non savers.  Politicians only care about numbers and votes.

Your explanation does not take into account the near global participation in playing for time.  Do you think the Chinese, the EU, even the solvent countries would play ball is these actions were just to pass blame between the Republicans and Democrats?  Are all the central banks of the world buying gold because they like the Dems and not the Republicans?  This is about money.  They are straining to keep everything stumbling forward until a new system is ready to be instituted.  They can't stop the world's economy while a new system is devised.  The shift has to be seemless.

Wed, 06/01/2011 - 14:46 | 1329730 Spastica Rex
Spastica Rex's picture

I think emergent behavior explains the weirdenss. Two simple imperatives: 1) maintain the status quo 2) retain capitalism (however it's defined). All the complexity boils down to these two rules.

Wed, 06/01/2011 - 21:32 | 1331106 knukles
knukles's picture

"Loot Ahoy"

Wed, 06/01/2011 - 16:46 | 1330281 macholatte
macholatte's picture

There's another angle, Smiddy. The concept that all the problems were orchestrated needs a bit of modification. How about this: They fucked up.

The orchastra played the wrong song and bottoms up! Scramble for the life boats.

So now, as you said, they need to reboot, buy time, configure a solution and not get killed, both literally and figuratively, during the process, which can take years. The idea that all the central banks, in a global economy, work independently and not in concert may not be the fact of the matter. There is a great deal of collusion.

 

People go where they want to be led.

-- Edward Bernays

 

 

Wed, 06/01/2011 - 13:09 | 1329357 LRC Fan
LRC Fan's picture

BTFD-just avoid LNKD, AIG, GM, MSFT, RMBS.....

Wed, 06/01/2011 - 13:09 | 1329358 I think I need ...
I think I need to buy a gun's picture

when is gold revaluation?

Wed, 06/01/2011 - 13:09 | 1329359 Crummy
Crummy's picture

A revolt worth fueling.

 

Wed, 06/01/2011 - 13:50 | 1329541 Hedgetard55
Hedgetard55's picture

I would like to see, as a result of that revolt, Timmah and Uncle Ben as cellies in Sing Sing for the rest of their lives.

Wed, 06/01/2011 - 16:34 | 1330203 Real Estate Geek
Real Estate Geek's picture

Those two; together?  I think you're forgetting to celebrate and encourage diversity.

 

Wed, 06/01/2011 - 17:03 | 1330352 JR
JR's picture

Geithner of NYFed cum USTreasury’s lasting legacy will be bailouts. And the only reputation he has off Wall Street is to try to find people who’ll believe they have worked. These are lies; Geithner is using the big lie and WaPo to protect his decisions of taking taxpayer money and bailing out his people - i.e., I’m doing a responsible job.

Wed, 06/01/2011 - 13:10 | 1329365 CPL
CPL's picture

I just knew they would be caught doing this nonsense again.  it made zero sense that the recovery of GM was all about SUV's.

 

Well at least if they are going to broker a scam, it might as well be one born out of the Nortel nonsense.

Wed, 06/01/2011 - 13:11 | 1329368 Temporalist
Temporalist's picture

I thank Salvidor Dali for making the dream world I wake up to daily.

Wed, 06/01/2011 - 13:15 | 1329393 Shell Game
Shell Game's picture

At least one can walk away from a Dali..

Wed, 06/01/2011 - 13:57 | 1329574 citta vritti
citta vritti's picture

Dali high?

Wed, 06/01/2011 - 13:11 | 1329371 Russiamerica
Russiamerica's picture

Banksters, where do you want it?

Politicians, same place as last time.

Banksters, wont that hurt!

Politicians, no it wont hurt me, only future generations.

Banksters wont they notice?

Politicians, nope they think its normal.

Banksters, excellent I will prepare my family and friends then.

Politicians, what will you do?

Banksters, We are going to adjust gold and silver to a lower price then buy as much as we can but only physical.

Politicians, What should I do?

Banksters, Duh.......... you have already done it! Thanks

 

 

 

Wed, 06/01/2011 - 13:14 | 1329377 Mercury
Mercury's picture

Yes folks,  from one of the great champions of...

* Too big to fail
* Too important to prosecute
    and
* Too rich to be wrong

It's......

** Too expensive and counterproductive not too buy again !!

Timaaaaaaahhhhhhhhhh !!!!

Wed, 06/01/2011 - 13:24 | 1329407 tickhound
tickhound's picture

Re-dedicated to the man who brought us the above...

 

Elton John, Tiny Dancer (Tiny Tim-mah)

 

Blue skies, Bennay

Debt pimp, Timmay

Schem-sters for the man.

 

Prices high,

Debt to the sky,

Print is the ponzi plan.

 

Larry Summers,

massage the numbers,

marking market to a sham.

 

Now it hits me,

the fraud economy,

toilet paper in my hand...

 

Barry freaks, out in the street

Another ticket sent by God

No turning back, we just laugh

The price for Ipad's not that bad.

 

Awoken man, he makes a stand

In an internet forum

Speaking on, right and wrong

The story's old news for some

 

But oh how it feels so true

Lying here, in IOU's

Cursing you, but you can't hear me

When I say slowly, but LOUDLY

 

F' me harder, tiny Tim-mah

Countless hedge-funds hit the highway

Wash the world in worthless pap-ah

Another busy day, today...

 

 

Wed, 06/01/2011 - 14:01 | 1329605 Vic Vinegar
Vic Vinegar's picture

LOL.  Nice work.

Wed, 06/01/2011 - 15:58 | 1330002 Dolar in a vortex
Dolar in a vortex's picture

nice

Wed, 06/01/2011 - 13:17 | 1329420 Mercury
Mercury's picture

to buy again

Wed, 06/01/2011 - 13:09 | 1329379 LaLiLuLeLo
LaLiLuLeLo's picture

The writer is secretary of the Treasury.

 

noooo...The writer is SATAN

Wed, 06/01/2011 - 13:18 | 1329408 Robot Traders Mom
Robot Traders Mom's picture

+666

Wed, 06/01/2011 - 13:16 | 1329418 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Little Nicky.

Wed, 06/01/2011 - 13:32 | 1329483 augie
augie's picture

is robo's mom's real name valarie by any chance?

Wed, 06/01/2011 - 13:13 | 1329382 Missiondweller
Missiondweller's picture

As I said yesterday, the new mantra will be "more stimulus, we're almost there"

(Just one last "hit" and I'll go cold turkey, I swear!)

Wed, 06/01/2011 - 13:11 | 1329386 Shell Game
Shell Game's picture

Geithner needs to become lampost decor.

 

Wed, 06/01/2011 - 13:13 | 1329395 orangedrinkandchips
orangedrinkandchips's picture

Billions for a few thousand jobs. Wonderful. Let the stupid fuckers fail. Period. The market has spoken. IF they made shit that was half-way decent, then the fucking govt wouldnt have to deal with it. Ignore the market at your own risk, not ours fuck-wad Tim.

 

It is so easy to understand. Survial of the fittest. GM and Cry-slayer are shit companies. They are like the Do-Do bird. Obsolete. Bottom line, people would lend without a problem if they thought these companies can make a car that can run.

Your playing favorites and you get fucked bigtime.

Besides, Tim G. will go down in history as the worst civil servant ever!

Wed, 06/01/2011 - 13:16 | 1329399 Cdad
Cdad's picture

Sheesh Tyler,

In China, they build a hotel, implode it, then rebuild it.  It's a perfect solution for a falling GDP.  Timmay is just learning from China, stacking one GM car on top of another GM car.  All that is left is to put them in a car crusher and recycle the materials....and rebuild them.  Presto.

And anyway...what is all this chatter about no jobs in America.  According to Wall Street just:

1.  Buy Netflix shares

2  ?

3.  Jobs

Simple.  Who knew being an economist [or a treasury secretary] was so easy?

Wed, 06/01/2011 - 13:31 | 1329459 Cdad
Cdad's picture

Hmmmm?  I must be wrong.  The NASDAQ is shaping up to be a complete, one day, simple moving average wipe out.  Pick your flavor, 10, 20, or 50.

What am I and Timmay missing?

Wed, 06/01/2011 - 13:31 | 1329480 plocequ1
plocequ1's picture

Im locked and loaded on NFLX. Im very happy to be here today.

Wed, 06/01/2011 - 13:50 | 1329542 Cdad
Cdad's picture

You are a true American, sir, doing your part for job creation.  However, word to the wise...you might want to monitor the ravenous put buying beneath your feet there.  You know...just monitor it.

But anyway, everyone knows that streaming movies feeds a hungry nation.

Wed, 06/01/2011 - 14:01 | 1329589 citta vritti
citta vritti's picture

cheaper than iPads? plus, great taste, less filling?

Wed, 06/01/2011 - 14:53 | 1329747 Spastica Rex
Spastica Rex's picture

Netflix is responsible for the single greatest innovation in modern history, namely, the ability to watch any episode of the Black Adder at any moment on any day. My life is complete. I am simply waiting for an approved device to help me quietly end my life as I fall to sleep watching Rowan Atkinson make penis jokes. You can grind up my remains and feed them to the poor.

Wed, 06/01/2011 - 15:04 | 1329778 Cdad
Cdad's picture

Ummm...Plocequ1,

This just in....

http://www.google.com/hostednews/ap/article/ALeqM5ik9nx-HC02AMQJeknM4vTcUGQAIg?docId=f929ac78edce43a5bb70ff7d7adc7747

Not to worry...that's only a ten fold increase in expenses...for Starz alone.  No problem here.  I'm sure that is NOT why folks are buying NFLX puts.

Wed, 06/01/2011 - 13:18 | 1329410 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

Boobus Americanus will take it up the ass like they always do. As long as they don't have to think, they'll rubber stamp everything.

 

Ps--Hey feds, you do realize this is only going to work until it doesn't. I suppose this is a bad time to point out, as Robert Reich has on numerous occassions (not a fan of him either) that at some point, the great unwashed is going to come knocking at your gated communities. Cardio people....cardio.

 

Thankfully, I only have to run faster than some of you.

Wed, 06/01/2011 - 13:36 | 1329488 scatterbrains
scatterbrains's picture

"only have to run faster than some of you"  takes me back to my unemployed youth when we would drink beer and play *hot beans* around dusk.. sort of hide&seek except you hide a leather belt then send everyone out searching for it.  Who ever finds it yells "hot beans" and starts whipping who's ever closest to him before or unless (sometimes peeps slip and fall) they reach base.  I only had to run faster then the slowest player..  one time while fleeing for base and hearing a friend get whipped, I laughed so hard a sharted...  memories!

Wed, 06/01/2011 - 14:46 | 1329726 Chump
Chump's picture

Awesome.

Wed, 06/01/2011 - 13:15 | 1329412 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

He didn't save any union jobs!  He allowed GM to destroy the union when they filed bankruptcy before the fascist government bailed them out, which negated their pensions.  Policy has destroyed the unions with NAFTA and propaganda that a union is a bad thing.  I will admit, most unions are horseshit organisations, but the union is like a tribe of people with like minded ideals.  It is the idea of the union that is America.  The United States of America is essentially a union in and of itself.

Wed, 06/01/2011 - 14:01 | 1329603 citta vritti
citta vritti's picture

and 600,000+ dead in the Civil War to prove States couldn’t leave and, oh yes, you can’t enslave people except by debt

Wed, 06/01/2011 - 13:19 | 1329414 Translational Lift
Translational Lift's picture

"The car companies are leading a comeback in American manufacturing."

Not very encouraging eh?    Clueless f*ck.........

Wed, 06/01/2011 - 13:22 | 1329428 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

Yep this is the finest America has to offer, apparently. Now if they could just eliminate the internet, all this Goebbels drivel just might stand a chance.

 

Nope.

 

FAIL

Wed, 06/01/2011 - 13:17 | 1329419 HistorySquared
HistorySquared's picture

Brilliant strategy - let's prop up an uncompetitive company that now has an unfair advantage over viable US auto startups and institute subsidies that encourage americans to saddle themselves with 10s of thousands of more debt.

 

 

Wed, 06/01/2011 - 13:29 | 1329468 docj
docj's picture

+1. Brilliantly summarized.

Wed, 06/01/2011 - 13:43 | 1329518 hedgeless_horseman
hedgeless_horseman's picture

Yes we can.

Wed, 06/01/2011 - 13:22 | 1329429 karzai_luver
karzai_luver's picture

What more than anything shows the failure that is the Amerika of today, is that

a cretin swine idiot like Timmie and/or the O is the best they can do for

frontman for the rape and pillage that passes for markets these days.

 

 

Wed, 06/01/2011 - 13:23 | 1329440 redpill
redpill's picture

a rEVOLution worth inciting

Wed, 06/01/2011 - 13:29 | 1329452 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

These are not the channels i like to stuff.

Wed, 06/01/2011 - 13:30 | 1329474 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Silver flash crashed today.  Seems to be coming around for a second one.  Volatility is fleecing the markets and washing the Dow 12k range.  El-Arian says no QE3 but what will happen if the Treasury/Fed has to pay back the debt instead of monetizing it?  Raise taxes?  SSTF is already drawing dead red, they could cut medicare but then old people would join the dollar menu rebellion.

Wed, 06/01/2011 - 13:27 | 1329457 LRC Fan
LRC Fan's picture

Dow is jumping up and down 10 pts in a millisecond...falling fast.  Come on baby flash crash 2.0 the market and especially crude...

Wed, 06/01/2011 - 13:44 | 1329532 cougar_w
cougar_w's picture

My company (JNPR) was down -9% a few minutes ago, didn't hit the breakers, is trying to climb out. But it's clearly a blood bath.

Jeezuz. It ain't just numbers when it's your own options getting the hammer.

Wed, 06/01/2011 - 13:39 | 1329473 John McCloy
John McCloy's picture

Here is a gem from the MSM Headlines:

"VP Joe Biden leading Debt Ceiling Talks"

  How fucking dumb do these folks think ppl are. They throw a headline bone to pretend Biden is a participant in what will actually occur so as to bestow some authority on these clowns. The funniest tidbit to me was even MSNBC using the exact works " I have been told that this vote was simply theater and by Republicans that this is symbolic. So symbolic  ASSURED WALL STREET that this was merely theatrics and to pay no attention to this and do not overreact to this"

  WHAT?? This is what money is being spent on ?? PR Campaigns? I love how MSNBC spins this as a one party thing as if it is not the Entirely too much Bi-partisanship we have seen from both parties for the last 30 years that punished the average American.

Here is the clip:

http://www.youtube.com/watch?v=IUi4qlvPVMI

Wed, 06/01/2011 - 13:31 | 1329481 Thisson
Thisson's picture

Who's going to save the world?

http://www.youtube.com/watch?v=51WyVA3pTH4

Wed, 06/01/2011 - 13:36 | 1329486 ExpendableOne
ExpendableOne's picture

When can we have a program to allow us to trade in useless civil servants for some thing useful (bent shitcan perhaps)??

Wed, 06/01/2011 - 13:35 | 1329497 slewie the pi-rat
slewie the pi-rat's picture

stop fueling around.

as detroit goes, so goes the country. 

how about this for a new GM model:  Fascist Bastard

too trendy?

Wed, 06/01/2011 - 14:22 | 1329649 tickhound
tickhound's picture

The new Ford Fascism has a nice ring to it too...

Wed, 06/01/2011 - 13:39 | 1329498 rsnoble
rsnoble's picture

Last time I seen pics/stats on Detroit it looked like a post-war zone.  Glad all is better now.  Boy, talk about grasping for straws.  The game of greed has gone on for too long, eventually everyone's gona get their asses ran over stimulus or no stimulus.

Wed, 06/01/2011 - 13:51 | 1329559 NotApplicable
NotApplicable's picture

Why, haven't you heard? Detroit's gone green! It's all pasty white hipsters and gardens now.

I just wonder if the dead have stopped moving out?

Wed, 06/01/2011 - 13:42 | 1329514 bankonzhongguo
bankonzhongguo's picture

Geithner. 

Real world evidence of the Peter Principle.

Tim.  Even the Chinese countryside children are giggling at you.

Wed, 06/01/2011 - 13:54 | 1329561 mayhem_korner
mayhem_korner's picture

Hopefully he'll graduate to real world evidence of the Darwin Award.  :D

Wed, 06/01/2011 - 13:51 | 1329563 Hedgetard55
Hedgetard55's picture

Geithner's father hired Obambam's mother back in the day.

Wed, 06/01/2011 - 13:43 | 1329516 cougar_w
cougar_w's picture

Sorry Tim but Mr. Market did not drink his Koolaid and take the required HappyPill(TM) this morning.

Wed, 06/01/2011 - 13:40 | 1329517 DonutBoy
DonutBoy's picture

You cynics.  Tim Geithner has saved the heartbeat of America and he's going to pay his taxes this year.  Stop your damn whining.

Wed, 06/01/2011 - 13:56 | 1329571 NotApplicable
NotApplicable's picture

You mean file his taxes. As a gov employee, he is a tax consumer, not a (net) tax payer.

BTW, do I really sound whiny?

Wed, 06/01/2011 - 13:46 | 1329531 richard in norway
richard in norway's picture

All the markets are moving in sync with each other, when the Dow was down one percent it stopped falling and so did every other market. Every time the Dow recovers a bit so do the other markets, when it starts falling so do the others. all the charts are the same

my god, could it be any more obvious

Wed, 06/01/2011 - 13:57 | 1329585 NotApplicable
NotApplicable's picture

Yes, but you have to quit using the word market, and instead call it a charade. That would make it quite obvious. ;-)

Wed, 06/01/2011 - 13:51 | 1329544 Atch Logan
Atch Logan's picture

Excuse me, excuse me.  Didn't Norway give Obama the Nobel Prize for Peace.  Got that wrong.  Got this wrong, little nordic boy.

Wed, 06/01/2011 - 13:52 | 1329567 richard in norway
richard in norway's picture

im in norway, that does not make me norweigen

 

 

Wed, 06/01/2011 - 14:00 | 1329583 djsmps
djsmps's picture

The Nobel Prize is from Sweden.

Wed, 06/01/2011 - 13:51 | 1329548 AldoHux_IV
AldoHux_IV's picture

The writer is a friggin idiot.

Wed, 06/01/2011 - 13:49 | 1329553 mayhem_korner
mayhem_korner's picture

What happens next for Chrysler and GM is up to their executives, managers and workers — just as with any other company. We cannot guarantee their success, and at some point they may stumble. But we’ve given them a better shot.

Plausible deniability.  Next stop...TIMBERRRRR.

Bail, baby, bail!

Wed, 06/01/2011 - 13:57 | 1329584 cougar_w
cougar_w's picture

Timber is right. These fookers are going down. I don't give them more than 6 months to live and here's why: They need to die either way ahead of the elections so the memory will have faded, or anytime after, and my bet is before so that means now.

Wed, 06/01/2011 - 14:02 | 1329593 NotApplicable
NotApplicable's picture

My pity goes out to anyone who bothered to read this long-winded drivel.

Wed, 06/01/2011 - 14:02 | 1329597 Doyle Hargraves
Doyle Hargraves's picture

Yeah all bankruptcy did was allow GM to split their dealerships and enable more stuffing than was possible before. I drove by the 'new' Chevy dealership in town (formerly a Saturn dealership) and they are loaded to the gills and overflowing with full size trucks. In order to 'create' that dealership they stripped the Chevy brand from an existing GM dealership (over 60 years in business) and gave it to Saturn's owner (an avowed Obama supporter, btw). They then left the other dealership to sell GMC/BUICK/CADILLAC, and GM connected Hyundai. Meanwhile all of the above mentioned dealers have more inventory than they can store and can't mark down their vehicles enough to sell them because no one wants their joke vehicles (Volt you can go around the corner and back before it dies, and cruze which has problems with the steering wheel falling off and an assload of full size trucks with gas going to $5/gallon). When Saturn went under I got rid of my wife's VUE and got her a used BMW X3. The initial quality of that used X3 beat the sh*t out of the Saturn when we bought it brand new in 2008. F*ck GM, their shit is sorry. German engineering bitchez!

Wed, 06/01/2011 - 14:00 | 1329600 pdizzle
pdizzle's picture

Geitner has basically failed at every job he's had. Now You can add "writer" to that growing list.

Wed, 06/01/2011 - 14:17 | 1329609 Doyle Hargraves
Doyle Hargraves's picture

Not only that, but EVERY SINGLE BMW X3 in the world is now produced in union-free South Carolina Bitchez!

 

http://www.bmwusfactory.com/manufacturing/production-overview/#Stats-and-Information

Wed, 06/01/2011 - 14:03 | 1329613 Atch Logan
Atch Logan's picture

Tick Hound, your "Tiny Dancer" would go to the top of the charts.  And I think Elton John would approve. Applauds.

Wed, 06/01/2011 - 14:07 | 1329615 pdizzle
pdizzle's picture

agreed about bmw, that is a fine car!

Wed, 06/01/2011 - 14:06 | 1329621 sasebo
sasebo's picture

I've got news for delusional Timmy, the other stupid asshole bankers & their dumb asshole politician buddies trying to run this country - IT AIN"T WORKING.

It's all about results & they ain't getting any. 

Wed, 06/01/2011 - 14:07 | 1329627 Atch Logan
Atch Logan's picture

No, I am a Swede/Danish, first generation.  The Nobel Peace Prize that Obama got was from Norway, not Sweden; that was what was publicized, and I was confounded, too.

I don't know who little Norway Boy is, but he is wrong. If he has a love affair with little Timmy, he can get his number easily thru the US government.  I hear he is androgenous, so Little Norway Boy can't loose.

Wed, 06/01/2011 - 14:56 | 1329748 richard in norway
richard in norway's picture

what are you talking about i am short the Dow and was looking at the uk index by mistake and it was going up and down in sync with my profits when i noticed i checked the other charts they were all the same almost tick for tick across twenty indexes. how can that happen without manipulation on a global scale.

 

do you think i should ignore the evidence of my own eyes, every mini rally was replicated in all the markets simultaneously

 

coincidence

Wed, 06/01/2011 - 14:16 | 1329642 jmc8888
jmc8888's picture

[tic] Well if that's where all the fuel is going, no wonder we have high gas prices[/tic]

Wed, 06/01/2011 - 14:23 | 1329659 csmith
csmith's picture

All about the "who" rather than the "what". Ultimate outcome is some people got to keep assets and stay in positions of power and lucre which they otherwise would not have. And the ONLY reason they were able to do so is because they were either politically favored themselves or belonged to politically favored organizations. The market would have rationalized the assets according to the rule of law (which Obama rode roughshod over) and we would have a truly healthy auto market today, instead of a channel-stuffing sham.

Wed, 06/01/2011 - 14:27 | 1329661 Clowns on Acid
Clowns on Acid's picture

Keep your heads...vote Timmy and the destroyers out of office.

Hold the new guys' feet to the fire. It is really that simple. 

Wed, 06/01/2011 - 14:34 | 1329682 karzai_luver
karzai_luver's picture

UM , no it's not shill-hack.

 

the new fascist are just the old fascist that begat that fascist now in office.

 

 

First you BURN DOWN THE OFFICE.

Anyone that is given the resources to "run" and then is selected is by their own win unfit.

 

You can't find any not bought off , it is prevasive.

 

Wed, 06/01/2011 - 14:33 | 1329684 QQQBall
QQQBall's picture

Timmay is not an economist or a businessman; he is a gov't office worker.

Wed, 06/01/2011 - 14:35 | 1329693 karzai_luver
karzai_luver's picture

Nah, he's just a purty face............

Wed, 06/01/2011 - 14:45 | 1329714 dcb
dcb's picture

beats trillions to save less banker jobs

Wed, 06/01/2011 - 14:55 | 1329745 JR
JR's picture

Was GM purposely sabotaged? According to columnist Christopher Bollyn, Yes.

Says Bollyn: “The people who brought down the operation were Trojan Horses, people who had bought their way into positions of control in order to destroy them… corporate raiders of the worst kind. General Motors did not simply collapse as a result of market forces; it was bankrupted by corporate raiders who had infiltrated the company and taken control of its finances.”

Bollyn identifies some of the key people and reveals the strategy behind the destruction of one of America's oldest companies.

“General Motors Corp. filed for bankruptcy on June 2, 2009, as the… Obama administration provided unprecedented federal funding and oversight.”

“So, how did GM go bankrupt? If one looks at the sales figures for GM, it simply does not make sense. In 2007, GM was the largest producer of vehicles in the world.

What is so different about the management at GM in the past few years that it caused America's biggest auto manufacturer to go into bankruptcy despite three consecutive bumper years of global sales?

“George Richard (Rick) Wagoner became president and chief executive officer of GM on June 1, 2000. The value of GM stock started the month of May 2000 at its peak of over $93 per share. The day Wagoner became CEO the stock finished at $69.81. By the end of the year it was worth less than $51 per share. GM stock had fallen to about $35 when Wagoner was elected chairman on May 1, 2003. Why promote a CEO who was clearly taking the company down the drain?

“Despite the falling stock price, Wagoner remained CEO and chairman of GM until March 29, 2009. Under Wagoner's leadership GM suffered more than $85 billion in losses -- losing $82 billion in the last 4 years! Why wasn't Wagoner replaced earlier? How was GM selling more cars than ever but losing more and more money? It simply doesn't make sense.”

Were his hands tied? Rick Wagoner was photographed with Mark Neporen, COO of Cerberus Capital Management, L.P, and Eric Feldstein, chief executive of GMAC and treasurer of General Motors Corp. during the 2006 announcement of the Cerberus deal for a majority stake in GMAC in which Bernard Madoff's partner-in-crime,  J. Ezra Merkin, became chairman of GMAC.

“Is Wagoner responsible for $85 billion in losses at GM - or was he just a useful idiot...

“At the time the GM-Chrysler merger was being considered, Chrysler was primarily owned (80.1 percent) by the private equity firm Cerberus, headed by Stephen A. Feinberg and Merkin. It should be noted that Feinberg and Merkin also controlled General Motors Acceptance Corp. (GMAC), the financial services branch of GM.

“GM sold 51 percent of GMAC in 2006 to Feinberg's private equity firm Cerberus, when Merkin became chairman of GMAC. Had the merger gone through, Feinberg and Merkin would have probably become majority owners of both GM and Chrysler. This appears to have been the plan. Feinberg and Merkin, the owners of GMAC, had plundered and conspired to bring down GM so that they could take it over.

“When Cerberus gained control of GMAC, they hurt GM's domestic sales by raising the credit requirements for car loans. Feinberg and Merkin reportedly raised the credit requirements so high that they caused a very sizable chunk of sales to be lost due to customers' inability to secure financing. Cerberus reportedly used this tactic to pressure GM into selling or trading their remaining stake in GMAC.

“One of Merkin's funds lost $1.8 billion of investor cash with Madoff. Merkin was seen as "the Golden Boy controlling the Golden Goose.

“Feinberg and Merkin were also controlling co-owners of Israel's Bank Leumi, which had been privatized in 2005 under finance minister Benjamin Netanyahu… (Merkin became a controlling owner shortly before he got his hands on GMAC in 2006.)

“It was reported on December 30, 2008, that the U.S. Treasury would provide $6 billion more for GMAC…

GMAC reportedly lost nearly $8 billion while Merkin was in charge….Originally designed to provide financing for people buying GM vehicles, it branched out into other fields, such as real estate. GMAC Commercial Mortgage (GMACCM), for example, provided the funds for Larry Silverstein and the former Israeli commando Frank Lowy to take over the World Trade Center in July 2001.”

Wed, 06/01/2011 - 15:54 | 1329986 Arnolds Love Child
Arnolds Love Child's picture

Bollyn rules. That story is the poster child for gold.

Wed, 06/01/2011 - 15:04 | 1329780 the not so migh...
the not so mighty maximiza's picture

It almost reads like science fiction.   They will Oswald his ass when no bribe is big enough to publish his BS.

Wed, 06/01/2011 - 15:08 | 1329810 lizzy36
lizzy36's picture

Geithner just talking his book.....He is long 500m shares of GM.

I look forward to the same op-ed about AIG considering he still long 1.3B of those shares.

Long and STRONG timmy.

Wed, 06/01/2011 - 15:52 | 1329990 Atch Logan
Atch Logan's picture

Well, Richard in Norway, that is not the Norwegian flag, but you are employing it as such; where did you get it, out of some sci fi book?

In the meantime, don't put yourself off as a Scandinavian, which you are not, you little snot. Where do  you get off with this shit?

Also, if you are going to come in here spitting facts, get them right.  Don't put out your junk and then have to correct and apolgize, dweb.

And finally, troll, grow up.

Wed, 06/01/2011 - 17:21 | 1330413 Fiat2Zero
Fiat2Zero's picture

While I wouldn't waste too much time on what the Timster would say, the fact that Tyler gets this shit posted so quickly is awesome.

Timmy might has well have announced the S&P dip and coincident commodity takedown (which we knew was coming).

Tyler, just make sure to give us the tell when QE3 is getting queued up (I'm assuming JPM and Congress need to spout something).

I guess a special announcement from Ben B is the queue to go all in on commodities once again (i.e. QE3 is _on_).

Wed, 06/01/2011 - 18:27 | 1330605 Quantum Nucleonics
Quantum Nucleonics's picture

Dear American Taxpayer,

Two years ago the President and I payed off a political debt to our union masters by bailing out the car companies, throwing creditors, contract law, and due process under the bus in the process.  Using a variety of accounting tricks, we've made it appear that we're going to get most of that money back.  Thank you for bending over and taking one for the team.  Now go out and buy an f-ing car, my friend Ben can help you with some interest free financing.  And while you're at it, put in a market order for some shares in GM, I've got 500M shares of that crap to get rid of.

Sincerely,

Turbo Tax Tim

Wed, 06/01/2011 - 20:21 | 1330925 DavidC
DavidC's picture

If ever there was an example of 'rising to one's level of incompetency', Geithner is it.

DavidC

Wed, 06/01/2011 - 20:41 | 1330982 Chuck Walla
Chuck Walla's picture

A great time to short GM.

Wed, 06/01/2011 - 21:39 | 1331119 Destinapp
Destinapp's picture

My guess is that he is telling us this "story" to set us up for the next taxpayer funded bailout of a highly unionized industry that he will scare us into thinking is critical to all of us.

What is it?

The insolvent States and their unions!!!!!!!!!!!!!!

Thu, 06/02/2011 - 09:06 | 1331918 cranky-old-geezer
cranky-old-geezer's picture

Exactly who is going to buy those (junk) GM products Timmah?   Americans? 

You seem to overlook the fact that you and your Wall Street cronies have sucked all the wealth out of the American economy, leaving it too weak to buy those (junk) GM products

...then cut off all credit, leaving it unable to finance those (junk) GM products.

Sure, you saved GM, but you destroyed the American economy needed to buy their junk.

So GM is going to collapse anyway, and your big government investment in GM is going to collapse with it.

Thu, 06/02/2011 - 22:05 | 1334621 Yen Cross
Yen Cross's picture

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