Too Big To Fail
"The responsibility of any central bank is price stability. I was at the helm at that time. Price stability is two percent inflation, which we can’t closely control anyway. They ought to make sure that they are making policies that are convincing to the public and to the markets that they’re not going to tolerate inflation... The responsibility of the government is to have a stable currency. This kind of stuff that you’re being taught at Princeton disturbs me. Your teachers must be telling you that if you’ve got expected inflation, then everybody adjusts and then it’s OK. Is that what they’re telling you? Where did the question come from?"
Timothy Geithner is likely to go down in American history as one of the most dangerous, destructive cronies to have ever wielded government power. The man is so completely and totally full of shit it’s almost impossible not to notice. The last thing we’d ever want to do in our free time is read a lengthy book filled with Geithner lies and propaganda, so we owe a large debt of gratitude to former Congressional staffer Matt Stoller for doing it for us. Stoller simply tears Geither apart limb from limb, detailing obvious lies about the financial crisis, and even more interestingly, Geithner’s bizarre bio, replete with mysterious and inexplicable promotions into positions of power..."Geithner is at heart a grifter, a petty con artist with the right manners and breeding to lie at the top echelons of American finance..."
The core strategy of central states and banks to fix the Global Financial Meltdown of 2008 was to buy time: take extraordinary emergency monetary and regulatory measures to save the parasitic too big to fail banking sector and the rest of the crony-capitalist Wall Street parasites, and initiate an unprecedented transfer of wealth from savers and Main Street to the banks and Wall Street via zero-interest rates and credit funneled to the very players who caused the crisis. The idea was that the system would "heal itself" if authorities simply "bought time" by saving the financial sector from its own predation. The terrible irony in the official strategy of "buying time so the financial system can heal itself" is the policies prohibit healing and guarantee the next financial crisis will be greater in magnitude than the last one.
Has the next major economic downturn already started? The way that you would answer that question would probably depend on where you live. If you live in New York City, or the suburbs of Washington D.C., or you work for one of the big tech firms in the San Francisco area, you would probably respond to such a question by saying of course not. In those areas, the economy is doing great and prices for high end homes are still booming. But in most of the rest of the nation, evidence continues to mount that the next recession has already begun for the poor and the middle class.
"Unbridled faith in financial markets prior to the crisis and the recent demonstrations of corruption ... has eroded social capital. An unstable dynamic of declining trust in the financial system and growing exclusivity of capitalism threatens.... Capitalism must reassess bankers' sense of self."
After the crisis, many expected that the blameworthy would be punished or at the least be required to return their ill-gotten gains—but they weren’t, and they didn’t. Many thought that those who were injured would be made whole, but most weren’t. And many hoped that there would be a restoration of the financial safety rules to ensure that industry leaders could no longer gamble the equity of their firms to the point of ruin. This didn’t happen, but it’s not too late. It is useful, then, to identify the persistent myths about the causes of the financial crisis and the resulting Dodd-Frank reform legislation and related implementation...."Plenty of people saw it coming, and said so. The problem wasn’t seeing, it was listening."
Nearly all of us……well, all except our benevolent dictators, appear to be permanently caught in the first four stages of the Kubler-Ross black hole of loss and grief........
Francine Lacqua (Interviewer): Jim, you also have this new book out, right, saying "The Death of Money" and this basically argues that if a number of things come together, we could have financial warfare, deflation, hyperinflation, market collapse. And yet the markets are merrily going along. Are we in a fictitious world?
After a job well done by a public servant, and by a job well done we of course mean facilitating the transfer of middle class, taxpayer wealth to private bank accounts, it is customary to reward them with a comfortable job in the same bank as repayment. This is also known as the revolving-door phenomenon and is the norm in US "regulation" (the epitome of career development by any SEC employee or US Treasury Secretary is to be hired by a Too Big To Fail Bank or private equity firm) and generally, politics. But not only US. Bloomberg reports that it is just as prevalent in Europe:
- Vittorio Grilli joins JPMorgan as chairman of corporate and investment bank in Europe, Middle East and Africa.
- Grilli will report to Daniel Pinto
- JPMorgan announces Grilli hire in memo to staff, obtained by Bloomberg News
Because when the time comes to bailout the likes of JPMorgan, again, it will certainly help to have connected former "public servants" like Grilli on board of course. Rinse. Repeat.
Never in a million years did we think we’d ever use an article by Andrew Ross Sorkin as the basis of a blog post, but here we are. While probably entirely unintentional, his article serves to further solidify as accurate the prevailing notion across America that former head of the New York Federal Reserve and Obama’s first Treasury Secretary, Timothy Geithner, is nothing more than an addled, crony, bureaucratic banker cabin boy. Simply put, "Geithner is so bad, he actually makes Larry Summers look good."
Conditioned slaves can complain, bicker and debate all they want about their living conditions, but never about their actual slavery.
Bad Government and Central Bank Policy Are the MAIN CAUSE of Runaway Inequality
The similarities between 2007 and 2014 continue to pile up. And you know what they say - if we do not learn from history we are doomed to repeat it. Just like seven years ago, the stock market has soared to all-time high after all-time high. Just like seven years ago, the authorities are telling us that there is nothing to worry about. Unfortunately, just like seven years ago, a housing bubble is imploding and another great economic crisis is rapidly approaching.
The wonder is that more Americans are not ticked off about the state of our country than whatever is happening ten thousand miles away. The disintegration of Ukraine would be best understood by Americans as a mirror of ourselves and our sclerotic republic, poised to sink into poverty and disorder. Everything we do and say rings hollow now. What used to be called The Establishment has run out of ways to even pretend to save itself. We have no idea what’s next, but it’s not going to be more of what’s been.
I find it supremely ironic that ‘We the People’ have become modern day North American Indians and are taking fiat beads in exchange for our valuable land and labor.