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White House Stands Behind Geithner, Says Tim Was Not Involved In AIG Email Fiasco

Tyler Durden's picture





 

It appears Geithner will not be fired after all (for now). From Bloomberg:

Treasury Secretary Timothy Geithner “was not involved” in decisions by the Federal Reserve Bank of New York when it told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks in 2008, White House press secretary Robert Gibbs said.

Geithner, who was head of the New York Fed at the time, “wasn’t party to the decision,” Gibbs said at a White House briefing. Asked if President Barack Obama continues to have confidence in Geithner, Gibbs said, “Of course.”

Republicans and Democrats have called for Geithner to testify about the New York Fed’s effort to limit disclosures by AIG during the height of the financial crisis. Geithner was recused from working on issues involving specific companies at the time because he had been named by Obama as his choice for Treasury secretary, a spokeswoman said yesterday.

 


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Fri, 01/08/2010 - 14:24 | Link to Comment fuu
fuu's picture

So if the head of the NY Fed was not involved with this at all who was? And is not the head of an organization ultimately responsible for what goes on?

 

Nice to know that no one is ever responsible for their actions.

Fri, 01/08/2010 - 14:37 | Link to Comment i.knoknot
i.knoknot's picture

methinks they protest too loudly... i don't think this one is over.

then consider that yesterday Mr. Obama took full personal responsibility for a single bomb carrying passenger, out of millions of travelers per day... oh yeah, this enabled his fix, which is to x-ray us (and our wives). amazing how many 'full-body scanners are conveniently available in the wings to suddenly be deployed in all of these airports... like they didn't see this coming months ago.

"scare them then herd them"

Fri, 01/08/2010 - 14:40 | Link to Comment Mad Max
Mad Max's picture

+1000 on both counts.

Fri, 01/08/2010 - 14:52 | Link to Comment Careless Whisper
Careless Whisper's picture

I think the exact quote from the WH spokesman was:

"Secretary Geithner was not involved in any of these emails," Gibbs said.

Typical non-denial denial.

Fri, 01/08/2010 - 15:22 | Link to Comment DaveyJones
DaveyJones's picture

exactly. 

Fri, 01/08/2010 - 21:12 | Link to Comment Rainman
Rainman's picture

funeee....plausible denial is always passive or aggressive. Never both.

Fri, 01/08/2010 - 16:46 | Link to Comment MikeNYC
MikeNYC's picture

"SECRETARY Geithner" was not involved.

As opposed to "then NY Fed chief Geithner," who was involved, deeply.

Fri, 01/08/2010 - 18:15 | Link to Comment Anonymous
Fri, 01/08/2010 - 19:42 | Link to Comment Astute Investor
Astute Investor's picture

It comes down to what is the definition of "involved"....

Fri, 01/08/2010 - 23:58 | Link to Comment Heavy
Heavy's picture

I thought the idea was that a treasury secretary could allow faked reporting under the law for security reasons, but a (private industry?) Fed. head, can not?

Fri, 01/08/2010 - 16:10 | Link to Comment BorisTheBlade
BorisTheBlade's picture

then consider that yesterday Mr. Obama took full personal responsibility for a single bomb carrying passenger, out of millions of travelers per day... oh yeah, this enabled his fix, which is to x-ray us (and our wives). amazing how many 'full-body scanners are conveniently available in the wings to suddenly be deployed in all of these airports... like they didn't see this coming months ago.

that can be even more bizzare than you might think: http://www.youtube.com/watch?v=KiN3rVXShAg

Fri, 01/08/2010 - 15:21 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

That's quality leadership. I mean no wonder he is the Treasury Secretary!

Fri, 01/08/2010 - 15:33 | Link to Comment John Self
John Self's picture

Fortunately, the administration hasn't gotten around to hiring any Geithner underlings at Treasury -- so this time around, there's no one else for him not to be responsible for. 

Fri, 01/08/2010 - 15:52 | Link to Comment TraderMark
TraderMark's picture

So if not Tim who has the authority to give away tens of billions of taxpayer money.

Let me guess it was Chuck in accounting.

Or Stewart in legal.

 

Yep that's the ticket.

It can only be Hank or Ben and since Hank is "independent" of the Fed and of course RECUSED from any dealings with Goldman it must be Time's Man of the Year.

 

No wait, it was Chuck.

Fri, 01/08/2010 - 16:06 | Link to Comment Anonymous
Fri, 01/08/2010 - 14:24 | Link to Comment naiverealist
naiverealist's picture

Yeah, Right!

Fri, 01/08/2010 - 14:26 | Link to Comment docj
docj's picture

More comedy gold from Gibbsy.

Seriously though, which is worse?  That he "was a party" to this cover-up (in which case they're lying their asses off - another day another whopper of a lie, and all that)?  Or that he wasn't and were therefore oblivious to what was going on under his nose?

Fri, 01/08/2010 - 14:56 | Link to Comment Assetman
Assetman's picture

If the buck doesn't stop with Geithner at the NY Fed when he was, supposedly, in charge... why should the buck stop with him at the Treasury?

 

Fri, 01/08/2010 - 15:14 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

By definition, the buck starts at the Treasury;)

Fri, 01/08/2010 - 15:15 | Link to Comment Assetman
Assetman's picture

Not in the electronic world... digits are created by the Fed out of nitrogen, oxygen, carbon dioxide... and traces of many other elements. 

Some call that "thin air".

Fri, 01/08/2010 - 15:40 | Link to Comment Goldtoothchimp09
Goldtoothchimp09's picture

So Treasury discovered the "God Particle" before CERN?!

Fri, 01/08/2010 - 16:33 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

+1 now where is that darn Higgs particle (had it here a nanosecond ago)

Fri, 01/08/2010 - 22:34 | Link to Comment hidingfromhelis
hidingfromhelis's picture

Aha!  Now I get it; the Large Hadron Collider is actually the mother of all printing presses!

Fri, 01/08/2010 - 14:28 | Link to Comment john_connor
john_connor's picture

The O team and associated members are always right and are immune from anything.

Who cares anyway?  This whole thing is a sideshow.  The #1 biggest joke right now is Fannie and Freddie. 

Fri, 01/08/2010 - 14:28 | Link to Comment trav7777
trav7777's picture

So the emails from TGeither@ustreas.gov were not from him?

Fri, 01/08/2010 - 16:14 | Link to Comment Anonymous
Fri, 01/08/2010 - 14:30 | Link to Comment Gimp
Gimp's picture

Hope, Change ,transparency ..code words for the same old B.S you can believe in.

Fri, 01/08/2010 - 14:32 | Link to Comment waterdog
waterdog's picture

Who belongs to the handwriting on the documents provided by Darrell Issa in yesterday's post on this subject?

 

 

Fri, 01/08/2010 - 15:15 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:32 | Link to Comment Optimystic
Optimystic's picture

Right.  There can not be that many people with that authority.  So, who is it?

Fri, 01/08/2010 - 15:40 | Link to Comment Optimystic
Optimystic's picture

A whistle blower inside the Fed (or maybe PwC).........tell us who made those edits.  Any brave souls out there?

Sat, 01/09/2010 - 15:59 | Link to Comment Anonymous
Fri, 01/08/2010 - 14:32 | Link to Comment Oso
Oso's picture

either he was involved, or he is a fucking moron and should never have been appointed HEAD OF THE NY FED.

 

fuck this, fuck the government, FUCK GEITHNER

Fri, 01/08/2010 - 15:15 | Link to Comment Steak
Steak's picture

My sentiments exactly...when this (journalistic) smoking gun can be waved off, i mean it was in the guy's handwriting for cripes sake...then its clear our government and elected officials are working against us, not for us

Fri, 01/08/2010 - 15:35 | Link to Comment Missing_Link
Missing_Link's picture

THIS IS SPARTAAAAAAAAAAAAAAAAAA!!!!!!!!!!!!!!!!!!!!!!!!!!

Fri, 01/08/2010 - 15:36 | Link to Comment John Self
John Self's picture

You could work that line nicely into the end of Ministry's Stigmata.

Fri, 01/08/2010 - 16:06 | Link to Comment Anonymous
Fri, 01/08/2010 - 14:33 | Link to Comment chumbawamba
chumbawamba's picture

Get a rope.

I am Chumbawamba.

Fri, 01/08/2010 - 15:11 | Link to Comment Miles Kendig
Miles Kendig's picture

Use an extension cord....  At least we would find out what kind of soprano he really is and how he dances first.

Fri, 01/08/2010 - 15:05 | Link to Comment Steak
Steak's picture

Lets just forget that we're in a keptocracy for a day and vibe to some K'naan...how does that sound?

http://www.youtube.com/watch?v=pIrFMtVkw6w

Fri, 01/08/2010 - 14:33 | Link to Comment Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

The Administration has waved its magic fairy wand people, so this must be so.

 

Move along. Bibbity Bobbity Boo.

Fri, 01/08/2010 - 14:42 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:32 | Link to Comment DaveyJones
DaveyJones's picture

wow...what an analogy. I mean Luke, WAS in love with his sister, and this whole thing is nothing more than an incestuous mess...

when does the death star explode? 

Fri, 01/08/2010 - 14:33 | Link to Comment lsbumblebee
lsbumblebee's picture

This would fall under #9 and #13 in the 14 points of Fascism.

http://www.anotheramerica.org/fascism.htm

http://www.oldamericancentury.org/14pts.htm

Fri, 01/08/2010 - 14:40 | Link to Comment Mad Max
Mad Max's picture

Gibbs is less credible than Baghdad Bob these days.

Clearly our republic needs, and is getting, more bananas.

Fri, 01/08/2010 - 14:41 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

He's an errand boy, sent by grocery clerks, to collect a bill.

Fri, 01/08/2010 - 15:37 | Link to Comment John Self
John Self's picture

+ 1!

Sat, 01/09/2010 - 00:12 | Link to Comment Hidetora
Hidetora's picture

+Infinity

Fri, 01/08/2010 - 14:45 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:49 | Link to Comment The Rock
The Rock's picture

I want an investigation on the Fed and the AIG mess.

Move along, 'cause you're not going to get it.  Sweep it under the rug with all the other "non-investigations" (e.g. 9/11, Iraqi tortures, Israel's shenanigans)...

Fri, 01/08/2010 - 20:13 | Link to Comment Hephasteus
Hephasteus's picture

Seems like those got investigated pretty thoroughly. Just nothing happened.... Yet.

Fri, 01/08/2010 - 14:50 | Link to Comment faustian bargain
faustian bargain's picture

My question is, why isn't the O-Team ready to throw him under the bus? I figured he would be ripe for it by now. Obviously they seem to think there's more political value in keeping him than in ditching him...but why?

 

**edit: could it be they know there's more bad news coming, for which they are saving him as the scapegoat?

Fri, 01/08/2010 - 14:54 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:02 | Link to Comment waterdog
waterdog's picture

They want him to resign. Firing him says I made a mistake.

 

Fri, 01/08/2010 - 15:25 | Link to Comment Apocalypse Now
Apocalypse Now's picture

Exactly right, that's politics.

It would read, despite Obama's request that Tim Geitner stay... Tim Geitner has decided to move on to new opportunities...(probably at Goldman Sachs).

Fri, 01/08/2010 - 18:33 | Link to Comment Anonymous
Fri, 01/08/2010 - 14:50 | Link to Comment Anonymous
Fri, 01/08/2010 - 16:36 | Link to Comment Mad Max
Mad Max's picture

So you're going straight to the ninth circle, eh?

Fri, 01/08/2010 - 14:53 | Link to Comment Anonymous
Fri, 01/08/2010 - 14:54 | Link to Comment Lexington Duffet
Lexington Duffet's picture

If Geithner actually wanted actions kept dark, that is troublesome.  On the other hand, the job needs someone with sufficient expertise and brains.  Not many folk qualified for the job.   For thse who believe no rules should apply, I suggest that if this were so then your life would be nasty, brutish and short.  In an effort to water down the astroturfing from RW attack dogs, Prez Bush appointed Geithner to head the NY Fed. (Maybe that is not a good endorsement come to think of it....) 

"[Geithner]  was Under Secretary of the Treasury for International Affairs (1998–2001) under Treasury Secretaries Robert Rubin and Lawrence Summers.[5] Summers was his mentor,[10][11] but other sources call him a Rubin protégé.[11][12][13]


Treasury Secretary designee Geithner meets Finance Committee Chairman Max Baucus on November 25, 2008

In 2002 he left the Treasury to join the Council on Foreign Relations as a Senior Fellow in the International Economics department.[14] He was director of the Policy Development and Review Department (2001-2003) at the International Monetary Fund.[5]

In October 2003 at age 42,[15] he was named president of the Federal Reserve Bank of New York.[16] His salary in 2007 was $398,200.[17] Once at the New York Fed, he became Vice Chairman of the Federal Open Market Committee component. In 2006, he also became a member of the Washington-based financial advisory body, the Group of Thirty.[18] In May 2007 he worked to reduce the capital required to run a bank.[15] In November he rejected Sanford Weill's offer to take over as Citigroup's chief executive.[15]

In March 2008, he arranged the rescue and sale of Bear Stearns.;[10][19] In the same year, he played a supporting role to Hank Paulson, former CEO of Goldman Sachs, in the decision to bail out AIG just two days after deciding not to rescue Lehman Brothers from bankruptcy. According to some observers, Geithner severely damaged the U.S. economy.[20] As a Treasury official, he helped manage multiple international crises of the 1990s[12] in Brazil, Mexico, Indonesia, South Korea, and Thailand.[13]

Geithner believes along with Henry Paulson, that the United States Department of the Treasury needs new authority to experiment with responses to the financial crisis of 2007–2009.[10] Paulson has described Geithner as "[a] very unusually talented young man...[who] understands government and understands markets."[19]

 

Dumb deals or no, bad judgment or not, Geithner's still probably the best the Fed's got. 

Fri, 01/08/2010 - 14:56 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:02 | Link to Comment Miles Kendig
Miles Kendig's picture

ROFLMAO

Fri, 01/08/2010 - 16:59 | Link to Comment DaveyJones
DaveyJones's picture

The best they got...feel the same way about the guy heading N korea

Fri, 01/08/2010 - 15:14 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

How can you be so high and still type?

Fri, 01/08/2010 - 15:15 | Link to Comment waterdog
waterdog's picture

And in 2007 he filed a fraudulent federal tax return.

Fri, 01/08/2010 - 15:18 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

'Geithner a Gigantic Fool'

http://www.theusreport.com/the-us-report/aussie-paper-geithner-a-gigantic-fool.html

For your reading pleasure...

Fri, 01/08/2010 - 14:55 | Link to Comment pros
pros's picture

 

Maybe the NY Fed Chairman, Stephen Friedman(former GS CEO), who made a killing trading the GS stock during this period, was running the fraud/coverup/inside trading scheme---he's pretty smart.

Fri, 01/08/2010 - 14:55 | Link to Comment Anonymous
Fri, 01/08/2010 - 19:02 | Link to Comment Shortbus Bully
Shortbus Bully's picture

Don't forget he is gobbling down Clinton's shit too...with a side of dick, I think also.

Fri, 01/08/2010 - 14:56 | Link to Comment Anonymous
Fri, 01/08/2010 - 14:57 | Link to Comment Anonymous
Fri, 01/08/2010 - 14:58 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:00 | Link to Comment Miles Kendig
Miles Kendig's picture

Just because someone is in charge does not mean they are responsible...  This according to government sources speaking on background as the Obama administration continues the Bush administrations policies that no individual in the Senior Executive Service of the United States of America is responsible for anything.  This is an extension of how organizations make determinations when it is uncomfortable to contemplate the reality of individual responsibility. Geithner is a multi-house bitch and much can be determined by how the house chooses to cover for him.

Fri, 01/08/2010 - 15:01 | Link to Comment Stuart
Stuart's picture

I call BS!

Fri, 01/08/2010 - 16:00 | Link to Comment pros
pros's picture

 

Maybe the NY Fed Chairman, Stephen Friedman(former GS CEO), who made a killing trading the GS stock during this period, was running the fraud/coverup/inside trading scheme---he's pretty smart.

 

The Argentine bond scam was similar to the AIG-NYFed-GS swindle in that there was a mysterious "bond swap" just before Argentina collapsed and defaulted whereby a small group of bondholders got out whole...no one ever identified these holders.....Geithner was brought in to do the whitewash report which did not mention the preferential transfer.

Geithner has always done their dirty work..he's not very smart or particularly well-educated, so that was his route to the top.

Fri, 01/08/2010 - 16:39 | Link to Comment ayanni
ayanni's picture

+1

this story is not going away.  keep after it ZH.  Thanks.

Sat, 01/09/2010 - 20:19 | Link to Comment ToNYC
ToNYC's picture

The better the speech, the better the story; that's why they called it "forked tongue".

Just turn the volume down when the words start and you'll see the truth in what they do.

Fri, 01/08/2010 - 15:06 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:07 | Link to Comment Anonymous
Fri, 01/08/2010 - 16:45 | Link to Comment Anonymous
Sat, 01/09/2010 - 20:21 | Link to Comment ToNYC
ToNYC's picture

INTERPOL is an arm of the NYPD since 9-11..now what?!

Fri, 01/08/2010 - 15:11 | Link to Comment Steak
Steak's picture

Barney Frank is saying now that going after Geithner is a Republican political ploy and that the real blame for all this should be at the feet of Paulson.  This is not a jab at Frank, merely a telling indication of how the Democratic party sees this issue.  They are wildly misreading the situation here and getting into the whole "enemies" parinoia.

Dems believe they can blame their way out of this mess, and that their poll numbers are lagging because Republicans are winning the blame game.  That will be where the Dems choose to wage battle in 2010, and it will be a horrible mistake for them. 

Geithner is a horrible person and this is not a political statement.  Its just sad that through Geithner we can see all that cliched finger pointing and blaming that the big O railed against is back in full force.  Unless Dems realize that banksters and fraud are the real enemies here we'll be facing 3 years of political paralysis until the hopesters are kicked out just like the last batch of bums.

Fri, 01/08/2010 - 15:25 | Link to Comment Assetman
Assetman's picture

Good points.

Barney Frank has no room playing the blame game.  The hypocricy there is pretty thick. 

The mere fact that Geithner was complicit to whatever Paulson (a horrible person in his own right) was trying to push, is reprehensible.  Geithner must be made accountable for the coverup the NY Fed was trying to pull.  Otherwise, voters will hold the party in power accountable-- whether one like it or not.

Fri, 01/08/2010 - 16:32 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:16 | Link to Comment bugs_
bugs_'s picture

When this White House announces that
"they stand behind you" its time to
get your affairs in order.  Timmy is
having a bad afternoon today.

Fri, 01/08/2010 - 15:20 | Link to Comment Anonymous
Fri, 01/08/2010 - 16:50 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:20 | Link to Comment defender
defender's picture

Wait a minute, when did the AIG bailout happen?  Durring the election right?  So that means that they pulled Timmy G out of sensitive issues before O-BAM-a was even elected?  ...how does that work?

Fri, 01/08/2010 - 15:44 | Link to Comment bugs_
bugs_'s picture

Timmay was on the job at the NY FED - very busy couldn't file taxes etc.

 

Fri, 01/08/2010 - 15:22 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:29 | Link to Comment Anonymous
Fri, 01/08/2010 - 20:44 | Link to Comment Anonymous
Sat, 01/09/2010 - 20:24 | Link to Comment ToNYC
ToNYC's picture

How far behind him?...looks like there's room for a patsy or two. One to crouch down  behind his knees and the other to push backwards.

Fri, 01/08/2010 - 15:33 | Link to Comment robnume
robnume's picture

Can anyone spell RICO? I am a paralegal (freelance) and I am working alone on several briefs to see if the standards of 18 USC Chapter 96 (legal standards to meet RICO). Thus far, I am able to predict that, although only 3/4 finished with 1st brief, RICO legal standards will indeed apply. The entire US economic system is one giant Ponzi scheme. So-called government officials are deeply involved in Racketeering and Organized Crime. Guess I gotta do the DOJ's job for them. Somebody has to. I want indictments galore on Geithner, Paulson,et al.

Fri, 01/08/2010 - 15:34 | Link to Comment Anonymous
Fri, 01/08/2010 - 16:48 | Link to Comment Anonymous
Fri, 01/08/2010 - 15:37 | Link to Comment Goldtoothchimp09
Goldtoothchimp09's picture

"White House says Tim was not involved in AIG email fiasco"

YOU LIE!!!!!!

(apologies to Joe Wilson for stealing his material)

 

Fri, 01/08/2010 - 15:59 | Link to Comment GS is short Gold
GS is short Gold's picture

yeah, Timmy wasn't involved. And Madoff's wife and kids had no idea of his ponzi scheme. And Tiger was faithful to his wife and OJ didn't kill Nicole.

Fri, 01/08/2010 - 15:59 | Link to Comment glenlloyd
glenlloyd's picture

100% this is not over, there's too much of a cloud over this issue and they will eventually throw him under the bus.

Did I mention that I think Gibbs is a doofus? Oh well, now you know.

The responses don't make sense logically, you aren't the head of the NY Fed and NOT have intimate knowledge of what's going on with the meltdown of the biggest insurer in the US, it's just not a logical conclusion IMO.

 

Fri, 01/08/2010 - 17:13 | Link to Comment Anonymous
Fri, 01/08/2010 - 17:52 | Link to Comment swmnguy
swmnguy's picture

Hmm.  Is Dodd the SecTreas in waiting?  He's not anybody specific's protege; he's an equal-opportunity sock puppet.

Fri, 01/08/2010 - 16:08 | Link to Comment Gimp
Gimp's picture

We all laughed when Bagdad Bob gave his press conferences before the Irag invasion, now we have our own we are beginning ti understand how the average Iraq felt. Another sad day in the USSR.

Fri, 01/08/2010 - 16:09 | Link to Comment Oso
Oso's picture

THIS MAKES ME SO FUCKING MAD.

 

WHY ARENT AMERICANS PELTING THE NYFED WITH STONES, OR MASS PROTESTING ON WALL STREET.

 

WTF HAPPENED TO ALL OF YOU?!!?!?!?!?!!?!?!? 

Fri, 01/08/2010 - 16:36 | Link to Comment Ripped Chunk
Ripped Chunk's picture

A few more months of lying about unemployment, dollar collapse, pretend and extend.............  Outrage is brewing. It takes some loud thuds to awaken the lethargic US Citizen these days.

April 15 tax collections WILL DISAPPOINT!

Fri, 01/08/2010 - 16:12 | Link to Comment Paul Bogdanich
Paul Bogdanich's picture

So if whomever did this did it without authority when do they get booked into jail?  They won't because they acted under the authority of the Treasuryy Secretary (presumably) which means that there had to be a Presidential finding that this was appropriate.  Which President signed it and did the President elect concur?  Formally.  No way Bush signed that after the election without a concurance from the President elect.

Fri, 01/08/2010 - 16:21 | Link to Comment pros
pros's picture

Everybody knows that Geithner and Summers have been Bob Rubin's thugs since the early 1990's.

They helped Rubin and his GS buddies rob foreign counties like Mexico, Thailand, Korea and Argentina, then they even nailed Harvard and yes...they finally got control of the Fed and Treasury and quickly picked the USA clean to the point where solvency of the USA is subject to serious debate!

Fri, 01/08/2010 - 16:31 | Link to Comment carbonmutant
carbonmutant's picture

We know geitner is not responsible. He has a history of a lack of responsibility. But as long as this administration controls what the MSM reports this kind of crap will go on.

Fri, 01/08/2010 - 16:56 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture


Apologies for (re)posting unrelated comment but this is quite important IMHO (via Denninger's Market Ticker):

http://market-ticker.denninger.net/archives/1830-401kIRA-Screw-Job-Coming.html

The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.

 

http://www.businessweek.com/news/2010-01-08/americans-oppose-initiatives...

You MUST IMMEDIATELY or AS SOON AS POSSIBLE withdraw ALL funds in your 401(k)/IRA retirement accounts as they are about to be FORCIBLY "invested" in soon-to-be-worthless Treasuries. So you were wondering how the US Govt. was planning on selling over $2 Trillion worth of toilet-paper...er.."Treasuries" this year? Wonder no more...they will be STEALING the money from you at gunpoint. If you are worried about the penalties imposed upon withdrawal, don't be - just buy PHYSICAL Gold and Silver with the money, preferably in your personal possession, and the massive appreciation - both in nominal and real terms - will more than take care of any losses due to penalties.

Fri, 01/08/2010 - 17:04 | Link to Comment gossamer
gossamer's picture

Whiskey Tango Foxtrot???

Fri, 01/08/2010 - 17:53 | Link to Comment Oso
Oso's picture

not that i dont truly appreciate the sensationalism with which this is presented, or the clear talking up of your book...

 

...but since when did annuities or other steady payment streams immediately equal treasuries?  Couldnt any bond be included in that, including corporates?

 

Fri, 01/08/2010 - 18:24 | Link to Comment Anonymous
Fri, 01/08/2010 - 21:26 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

I didn't realize I could move markets by posting comments on ZH. Never knew I had that much power. BTW, that's real smart - the government is going to get people to funnel money into some company's bonds when it can DIRECTLY LOOT THE FUNDS.

Fri, 01/08/2010 - 18:23 | Link to Comment Anonymous
Fri, 01/08/2010 - 18:42 | Link to Comment AN0NYM0US
AN0NYM0US's picture

I read something about this or some proposed legislation back a few months ago and it made sense in an evil sort of way.

Sat, 01/09/2010 - 02:14 | Link to Comment Number 156
Number 156's picture

Do you think that is all they will take?

Scenario:

China, facing massive food shortages and riots throughout many provinces, secretly threatens the the USA that they will begin dumping their holdings of US treasuries unless the USA slashes prices on agricultural and food exports.

Just as secretively, the USA complies, and soon, and many American cities soon begin to face food shortages and massive price increases as supplies run short.

Soon, food will be a costly commodity, and when your creditor becomes hungry, look out.

 

Sat, 01/09/2010 - 20:33 | Link to Comment ToNYC
ToNYC's picture

Do you have a list of the top ten Unintended Consequences of keeping the majority of one's wealth in gold bullion and who doesn't have an army to defend it?

Fri, 01/08/2010 - 17:11 | Link to Comment Anonymous
Fri, 01/08/2010 - 18:21 | Link to Comment Anonymous
Fri, 01/08/2010 - 18:37 | Link to Comment Anonymous
Fri, 01/08/2010 - 18:58 | Link to Comment ZeroCool
ZeroCool's picture

These are not the droids you are looking for.

Four legs good, two legs better!

-Ministry of Truth

Fri, 01/08/2010 - 20:09 | Link to Comment Hephasteus
Hephasteus's picture

Poor timmah. He just can't figure out Turbo Tax OR thunderbird. He doesn't even know what a POP account is.

Fri, 01/08/2010 - 21:13 | Link to Comment laughing_swordfish
laughing_swordfish's picture

They won't replace Timmy.

If they do, the Congresscritters will demand "one of their own" in Treasuryfor "oversight" purposes.

I predict if Geithner is fired they'll go with either Chris Dodd or even Bawney Fwank. After all, the GSE's, the Housing Industry, The TBTF's all need a seat at the Treasury table when policy is being decided, right?

This is getting to be too much fun to watch.

Fri, 01/08/2010 - 22:01 | Link to Comment Anonymous
Sat, 01/09/2010 - 07:21 | Link to Comment Anonymous
Sat, 01/09/2010 - 20:30 | Link to Comment faustian bargain
faustian bargain's picture

Robert Gibbs fibs gliby for robbers.

Sat, 01/09/2010 - 17:48 | Link to Comment Anonymous
Sat, 01/09/2010 - 19:14 | Link to Comment Anonymous
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