This page has been archived and commenting is disabled.

Bill Black: Geithner’s Single Most Revealing Sentence

rcwhalen's picture




 

Latest comments on Tim Geithner from Bill Black and his blog "New Economic Perspectives" -- Chris

http://neweconomicperspectives.org/2014/05/geithners-single-revealing-se...

http://neweconomicperspectives.org/2014/05/geithners-ad-hominem-attacks-...

Geithner’s Single Most Revealing Sentence

William K. Black

Timothy Geithner has a great deal of competition for the title of worst Treasury Secretary of the United States, but he has swept the field as worst President of Federal Reserve Bank of New York (NY Fed).  Geithner is a target rich environment for critics and he has a gift for saying things that are obviously depraved, but which he thinks are worthy of a public servant.  

He did vastly more harm to the Nation as the President of the New York Fed than he did as Treasury Secretary.  He was supposed to regulate most of the largest (and most criminal) bank holding companies – and failed so completely that he testified to Congress that he had never been a regulator and that the problem in banking leading up to the crisis was excessive regulation.  His statement that he was never a regulator was truthful – but you’re not supposed to admit it, and you’re certainly not supposed to be proud of it.  Geithner, Greenspan, and Bernanke are the three Fed leaders who could have prevented the entire crisis by being even modestly effective regulators.  

Instead of regulating the banks, Geithner relied on the banks self-regulating through “stress tests.”  The stress tests were (and remain) farcical.  AIG, Fannie, Freddie, Lehman, the Irish banks, and the big three Icelandic banks all passed stress tests shortly before they collapsed.  It is a measure of Geithner’s goofiness that he has entitled his book “Stress Test.” 

As Treasury Secretary, Geithner made his infamous “foam the runways” comment.  He admitted that while the way he ran the programs putatively designed to help distressed homeowners was causing them to fail frequently to help homeowners it was succeeding in easing the bank crashes.  

Geithner repeatedly claimed as Treasury Secretary that he never worked for Wall Street (and as he left congratulated himself on not joining Wall Street – a few months before he did).  As New York Fed President Geithner worked for Wall Street for five years and was handsomely rewarded for that service.  As he has admitted, virtually bragged, he did not work for the American people as a regulator though that is what he was supposed to do.  

Geithner’s Most Revealing Sentence

Geithner’s failure to regulate as President of the NY Fed was far more harmful than the anecdote I am about to relate and his “foam the runways” comment confirms that Geithner continued to work for the banks rather than the American people once he became Treasury Secretary.  His service to the banks and contemptuous disregard of homeowners are even more appalling than the incident I will discuss.  The sentence this article discusses, however, is the most revealing about a broader range of Geithner’s character.  Each of the facets of Geithner’s character revealed by the sentence demonstrates his unfitness for office.  

The sentence’s very existence demonstrates two facets of these character failures, for Geithner went out of his way in his book to craft the sentence.  The context is that he is trying to settle a score with Neil Barofsky, the Special Inspector General for the Troubled Assets Relief Program (SIGTARP), because Barofsky audited, and often criticized TARP.  It would be perfectly fine for Geithner to provide his arguments about why he thought Barofsky’s criticisms proved inaccurate.  That could be a productive debate.  But Geithner took the policy criticism personally and is out to hurt Barofsky through ad hominem attacks rather than to win a policy debate on the merits.  People with Geithner’s vindictive mindset should never hold power. 

Second, Geithner’s three primary ad hominem attacks on Barofsky are self-damning and boost Barofsky’s already stellar reputation.  Geithner’s tone is deliberately snide, every word choice is slanted in clumsy attempts to demean Barofsky and his staff, and the attacks on Barofsky’s person are facially silly.  In his effort to wound Barofsky Geithner has only further revealed his character defects.  I will deal in this first article with only one of these ad hominem attacks.  Geithner is outraged that Barofsky: “would requisition firearms and bulletproof vests for his antifraud troops.”  Not content with trying to insult Barofsky, in the next sentence Geithner gratuitously and insultingly refers to Barofsky’s “well-armed team.”

Here’s why Geithner’s sentence is so revealing along so many disturbing dimensions.

He is ignorant of law enforcement and fraud.  Barofsky was personally responsible for protecting the health and lives of his staff of law enforcement officers (LEOs).  That staff was required in the normal course of their duties to question criminal suspects and potentially arrest.  Geithner obviously thinks it is silly that law enforcement officers who deal with financial fraud would (in modern America with massive gun ownership) be prepared to defend themselves against attacks.  I worked frequently with FBI Special Agents that investigated fraud – they always had a side arm with them at work (including at lectures where I was one of the trainers on how to identify, investigate, and prosecute elite financial frauds).  Indeed, FBI rules mandate that they have a side arm with them when they are working.  

Had Geithner become Treasury Secretary before March 2003 he would have been in charge of the Secret Service.  The Secret Service describes its investigative function in these terms:

“The Secret Service usually works criminal cases that are related to the nation's financial security. The Secret Service was originally founded in 1865 to suppress counterfeit money and while the agency still spends a lot of time investigating counterfeit money both in the United States and overseas, today's agents also investigate a variety of other financial crimes, including credit card fraud, computer fraud and bank fraud.”

Secret Service agents are LEOs.  When they conduct these investigations they have side arms and vests (except in some undercover operations).

Barofsky purchased vests and side arms for his LEOs (which Geithner tries to spin as “requisition[ing]” as if it were some high-handed and unprincipled act) because that is what virtually every other American leader of LEOs does to protect his people.  (Note that the vest only moderately reduces risk.  LEOs can be killed while wearing their vests.)

Geithner seems to think that people who engage in fraud never engage in violence. As a criminologist and a former financial regulator I would like to inform him he is wrong. Regular readers know from prior columns that even as S&L regulators we were the subjects of threats of violence (including murder) from controlling S&L officers – and we had no arrest powers and no power to conduct the form of investigations in the subject’s home that can lead to attacks on LEOs.  

Try this hypothetical: Barofsky did not provide his LEOs with the minimal forms of defense against assault that are provided routinely to all U.S. LEOs – protective vests and side arms – and one of his LEOs was assaulted by a fraud suspect and seriously harmed or killed.  What would Geithner have said in his book about Barofsky if that hypothetical had come to pass?  He would have denounced Barofsky as incompetent and indifferent to the safety of his staff.  (Indeed, Geithner would not have waited for the book had this hypothetical occurred. 

His book makes clear that Geithner viewed Barofsky as a thorn in his side that he hated. He would have jumped at the opportunity to remove that thorn by demanding that Barofsky resign.)   

Geithner was in charge of the TARP.  The SIGTARP’s LEOs were his people risking their lives to help protect TARP from fraud.  That means that they were protecting Geithner from the criticism he would have received if such frauds had not been detected and investigated by the TARP LEOs.  Geithner, TARP’s leader, mocks those LEOs as Barofsky’s “well-armed team.”  He repays their professionalism and their enormous success against those who sought to defraud TARP – which protected Geithner’s program and reputation – with mockery and contempt.  Geithner’s actions are shameful.  He was unworthy of those he mocks as Barofsky’s “well-armed” “antifraud troops.”

Geithner reveals in this sentence and the overall paragraph his indifference to the frauds by the elite bank officers that caused the financial crisis and exposed TARP to further losses.  He makes clear repeatedly his view that he never took elite bank fraud seriously or sought to hold the officers culpable.  Instead, as the recent leaks by the Department of Justice (DOJ) reveal, it was Geithner and his subordinate officials at the Office of the Comptroller of the Currency (OCC – a bureau within Treasury) who led the chorus of alarm that led an already cowardly DOJ to adopt the infamous “too big to prosecute” doctrine that Attorney General Eric Holder is now desperately seeking to walk back.  Every reference by Geithner to elite bank fraud is designed to mock anyone (i.e., Barofsky) that would take it seriously and try to hold the elite bank officers accountable for their crimes.  Geithner makes his childish, sneering tone on the subject obvious to even the most casual reader with phrases such as “Barofsky's desire to prevent perfidy” in addition to mocking the entire concept that fraud was important enough to warrant providing SIGTARP’s LEOs with even the most basic, essential forms of personal protection to reduce the risk that they would be maimed or killed in the performance of their duties.

If Geithner wants to start a journey of personal redemption he should forget Barofsky and all the imagined slights and make it his mission to meet personally with every SIGTARP LEO and apologize unreservedly for these passages – and then to apologize to them and the people of America in a very public publication.

The fact that Geithner would launch an ad hominem attack on Barofsky for taking the elementary protections any official must take to safeguard the LEOs who work for him establishes three reasons why he is unfit for leadership.  He took an auditor’s professional criticisms of a program personally and seeks to settle a score through a personal attack on the auditor.  That indicates he is too thin skinned to hold office and does not understand and value the essential function of internal audit.  Geithner should have taken his own advice in his book:  “The inconvenient truth of financial-crisis response is that the actions that feel right are often wrong.” 

The inconvenient truth of writing a book for the purpose of launching ad hominem assaults on the auditors is “the actions that feel right are often wrong.”  Geithner tried to settle a score with Barofsky through an attack on his safeguarding his LEOs and instead scored an “own goal” of epic proportions.  

His attack on Barofsky for protecting his people demonstrates that Geithner never took even a moment to learn about the function of SIGTARP or the nature of fraud.  That he failed to do so while supposedly dealing with the aftermath of the three most destructive epidemics of accounting control fraud and the financial crisis they drove demonstrates why we have no successful prosecutions of the elite Wall Street criminals whose frauds drove the crisis.

That Geithner used Barofsky’s entirely normal and praise worthy protection of his LEOs as the basis for condemning Barofsky and his LEOs demonstrates that Geithner has sunk to the level of loathsome.  But the fact that Geithner’s substantive criticisms of Barofsky were so pitiful that he felt he had to rely instead on mocking Barofsky and his LEOs as cowards because they were American law enforcement officers who wanted to have a side arm and a protective vest proves that Geithner has nothing but facially absurd ad hominem insults to levy at Barofsky even after years of plotting his revenge in his book.

Conclusion

The title of Geithner’s book that he wrote to settle these petty personal scores is a sad testament to his abject failure as a regulator while the NY Fed’s President.  He relied on the delusion that banks would self-regulate themselves to safety and soundness through stress tests designed to ensure that even the most fraudulent bank could easily pass the faux stress test.  In his book, Geithner was unable to present any action he took as an anti-regulator to warn the Nation about the three fraud epidemics, any effective action he took to stop those frauds, or any action he took to prosecute those frauds. He failed each of the three real “stress tests” that confronted him. Had he passed either of the first two tests we could have avoided the financial crisis.  Had he passed the third test at least the fraudulent elite bank CEOs would have been imprisoned and their fraudulent proceeds confiscated so that it was clear that crime did not pay.

Bailing out banks is not hard when a nation has a sovereign currency and the banks’ debts are denominated in that currency.  Bernanke, not Geithner, delivered the vast bulk of the real bailout that transferred the banks’ losses on the fraudulent assets to the Fed and allowed Geithner to claim that TARP was “profitable.”

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 05/14/2014 - 02:29 | 4758000 Colonel Klink
Colonel Klink's picture

Geithner is a cunt of the scummiest order.  Fuck that guy!

Tue, 05/13/2014 - 20:54 | 4757280 oberonsbane
oberonsbane's picture

As long as there are fools willing to part with their money redily, there will be people who will gladly releive them of it. It doesn't matter if it is the S & L scammers of 25 yrs ago or the ones from later years. One could go back even further to see that it has happened time and time again.

Once Geithner is gone, another con artist will take his place.

Tue, 05/13/2014 - 20:38 | 4757232 Midnight Rider
Midnight Rider's picture

Bernanke, not Geithner, delivered the vast bulk of the real bailout that transferred the banks’ losses on the fraudulent assets to the Fed and allowed Geithner to claim that TARP was “profitable.”

 

This is probably one of the biggest frauds ever perpetrated on the people of the United States. To claim that TARP was profitable, when the entire bailout was carried out by backdooring the banks crap assest over to the Feds books and the rest through stealing fixed income from those same citizens with ZIRP and giving it to the banks. Hundreds of billions of dollars of it. TARP essentially ensured that the TBTF banks could continue to pay themselves record bonuses through the entire recession.

Tue, 05/13/2014 - 15:36 | 4756104 Sorry_about_Dresden
Sorry_about_Dresden's picture

I can't understand why people will shoot up elementry schools, movie theater and not blow his punks head off?

 

Any comment from, the well armed, peanut gallery?

Tue, 05/13/2014 - 17:54 | 4756612 davidalan1
davidalan1's picture

lmao....great minds...he is a douche punk ass..

Tue, 05/13/2014 - 16:18 | 4756283 Berspankme
Berspankme's picture

If there is one guy I want to see die a horrible death, it's Geithner, even more than Bernanke. This scum, this fucking child is a piece of shit. May he die a horrible painful death. This is the poorest example of a "public servant" that I have ever seen and I'm old and have seen many bad ones. I hate Geithner and everything he represents.

Fuck you you little elf douchebag

Tue, 05/13/2014 - 17:52 | 4756587 Arius
Arius's picture

"The title of Geithner’s book that he wrote to settle these petty personal scores"

 

You seem to think to high of the guy ... he wrote the book to get his payback ... how many copies would sell - never enough to justify what he received and will receive.


Tue, 05/13/2014 - 15:26 | 4756058 falak pema
falak pema's picture

give a scammer and universal scam apologist enuff rope and he hangs himself in one beautiful sentence.

'I did not have sex with that banking cabal'.

Tue, 05/13/2014 - 14:24 | 4755817 All is chosen
All is chosen's picture

Those ears are made for hanging

but the wait might kill us all :(

Tue, 05/13/2014 - 14:16 | 4755788 kchrisc
kchrisc's picture

There is only one way off the guillotine list.

Tue, 05/13/2014 - 13:42 | 4755642 Felix da Kat
Felix da Kat's picture

"Urges to save humanity are usually a false-face urge to rule over it "   H L Mencken

Tue, 05/13/2014 - 13:04 | 4755469 moneybots
moneybots's picture

"...he testified to Congress that he had never been a regulator and that the problem in banking leading up to the crisis was excessive regulation"

 

The problem was the opposite- a lack of regulation, which allowed the bankers to behave as if it was 1929.

There was no crisis until after Glass Steagall was dismantled.  Bankers were then free to be reckless.

Tue, 05/13/2014 - 15:29 | 4756068 Count de Money
Count de Money's picture

More to it than that. Timmy was asleep at the switch. From Karl Denninger describes http://market-ticker.org/akcs-www?post=229004

Money quote (emphasis in the original):

"Let's leave aside the 'after' part of the 08 blowup and focus on what he either knew or should have known. Like, for example, the documented fact that Citibank knew Lehman was insolvent well before it blew up because they refused a repo transaction due to the firm not having any collateral that they judged to have value.  Since both were regulated entities that traded with the NY Fed and a tri-party repo involves the NY Fed directly it is inconceivable that the NY Fed did not know directly and factually that Lehman was insolvent weeks before it blew up.

...

Geithner was in charge of the NY Fed at the time."

Tue, 05/13/2014 - 13:26 | 4755566 bardot63
bardot63's picture

Thanks, Moneybots, but, if you are trying to help, that's not a sentence that would have been in turbotimmy's book, as the headline suggests, and as the article references.  I even went to the source material....same thing.....I'm not reading this fucking thing again. 

Tue, 05/13/2014 - 13:01 | 4755452 bardot63
bardot63's picture

OK, I give up.  I admit to being dense.  Can someone telll me, please, what is the fucking sentence that is headlined and then mentioned about a dozen times in the fucking article????? Go ahead, call me names, but tell me the fucking sentence! 

Tue, 05/13/2014 - 14:06 | 4755752 Felix da Kat
Felix da Kat's picture

The sentence is 30 years to life.

Tue, 05/13/2014 - 15:01 | 4755976 Raging Debate
Raging Debate's picture

Fix da Kat - Shoot, I would have been happy with the big banks broken up and resignations. After all, we enjoyed the big party for at least a decade. But they looted the place blind in 2008 to now. Guess the more senior political insiders felt they are kosher with there new baby in China. Central banking will be reformed completely as a utility. The actions of the franchise owners guaranteed it. Every once in awhile this time IS different.

Tue, 05/13/2014 - 12:47 | 4755404 moneybots
moneybots's picture

"It is a measure of Geithner’s goofiness that he has entitled his book “Stress Test.” "

 

I wouldn't call it goofiness, as what Geithner did was not Disneyesque.

Tue, 05/13/2014 - 12:39 | 4755306 novictim
novictim's picture

"... he was never a regulator..."   That attitude should have been explored more.  Alan Greenspan felt the same way...why?

So side-arms and protective vests aside, the story about Tim Geithner's petty mindset and failure to see the National Interests as paramount should have been explained in the broader context.  Geithner had one audience and he served them...but the audience was not the American people.  

America is now a plutocracy.

It is, and always will be, the financial elite that the Geithners, Greenspans, Obamas, Bushs, Baucus, Franks rub shoulders with.  They will feel a duty to protect and serve these elites, not you, the American people.

The real story, of course, is the ongoing tragedy about misregulation and deregulation and the turning of a blind-eye to a rigged system. It should not be boiled down to individuals for it is the system that puts these individuals in places of power.   The case of Tim Geithner is one of a system of Class Loyalty and one selected man's duty to protect the members of his tribe. 

As we watch America implode over the next decade with one oligarch appointed Prince after another driving the middle class into the poor-house, keep this broader context in mind.  The revolution will need folks who can see the problems for what they really are. systems issues, not as merely failures of lone individuals per se.

The functional and equitable solutions will be about "busting up", "taxing", "confiscating"...all the things that Zero Hedge purports to be against.

Tue, 05/13/2014 - 20:58 | 4757296 oberonsbane
oberonsbane's picture

This is how communism got it's start.

 

Wed, 05/14/2014 - 16:50 | 4760492 novictim
novictim's picture

Not really, ober.  Communism started as a theoretical construct based on a fantasy utopian model long ago discredited.  Though I'll grant you this.  Abusive Capitalism and corruption does generate fertile ground for any solution that seems to have a chance of success.

 

Tue, 05/13/2014 - 12:06 | 4755206 Blood Spattered...
Blood Spattered Banner's picture

Fuck the LEO's, stick to why Geithner should be in prison Mr. Black.

Your article makes you come off like some LEO worshipping patsy.

Tue, 05/13/2014 - 12:21 | 4755287 NotApplicable
NotApplicable's picture

As much as I'd like to make this man my hero, he's still damaged goods. I don't know what benefit he believes this article might have, but I find it to be but a diversion.

Tue, 05/13/2014 - 12:54 | 4755427 novictim
novictim's picture

I think Black diverged from his usual interests in order to set the record straight. Black is trying to make Geithner a character study in this one piece. It would have been better if he had tied it back into a larger thesis. He should have tried to answer how it came to be that this most important public office is used as a petty plaything by little Timmy.

Tue, 05/13/2014 - 11:39 | 4755079 Ariadne
Ariadne's picture

"The Secret Service was originally founded in 1865 to suppress counterfeit money"

Really? What do they claim to do since the 1913 forgers' victory? Other than serve and protect the counterfeiters?

Tue, 05/13/2014 - 11:12 | 4754884 Bemused Observer
Bemused Observer's picture

The fact that no one has been prosecuted/jailed for their role in the 2008 fiasco is something that will become very important in the years to come. None of these bastards should sleep too soundly yet. This isn't over.

Tue, 05/13/2014 - 12:18 | 4755274 NotApplicable
NotApplicable's picture

ROFLOL!!!

I'm sure they'll find some back-office brown people to frog-march down to the station just before the next presidential selection.

Tue, 05/13/2014 - 14:10 | 4755764 Bemused Observer
Bemused Observer's picture

They might try, but I don't think it would fly this time. I'm actually thinking that we'll see something happen on this after Obama's term is over. Not that they can jail them, statute of limitations and all, but someone is going to do some serious 'exposing', maybe we'll get Senate hearings, something like that. But I just don't think this is the end of this thing, and at least some of these guys are going to be 'crucified' somehow.

It's just too big a story, and there was no 'conclusion'. And THAT was their big mistake...you gotta give the public SOMETHING after a crime of this magnitude, they expect it. And it relieves the pressure. But apparently they are just going to try and get off completely scot-free this time. I think that is going to prove to be a bad miscalculation on their part. Something this big has too many people involved, and somebody is going to try and capitalize on what they know, especially once they feel safe from the law.

Or someone is going to piss someone else off a few years from now, and that person will just pick up the phone and start making calls.

Tue, 05/13/2014 - 11:10 | 4754879 Duc888
Duc888's picture

 

 

Advancingtime: "In 2009 Black was one of the very few really informed as to the facts. A lawyer, academic, author, and a former bank regulator, his expertise is in white collar crime, public finance, regulation, law, and economics. He developed the concept of "control fraud", in which a business or national executive uses the entity he or she controls as a "weapon" to commit fraud.  I found it interesting that Black and I interpret what is going on with the debate to control runaway entitlements in Washington and the solution from totally different perspectives.

His flaw may be thinking that "government is the answer",

 

Unfortunately that has always been B.Blacks Achilles heel.....he really believes that more laws and more government will fix things.  All that needs to happen is for government to enforce existing laws pertaining to financial fraud,.  B. Black is a big Gov guy.

Tue, 05/13/2014 - 11:40 | 4755081 justsayin2u
justsayin2u's picture

The progs and conservatives both agree on what went wrong and that prosecutions should be made.  The progs also want more regulations.  It would help more to have a large number of very agressive prosecutions than just to add new regs that wont be enforced.  The executive branch is in charge of prosecuting and have completely failed to enforce the law.

Tue, 05/13/2014 - 11:26 | 4754983 Canadian Dirtlump
Canadian Dirtlump's picture

Your argument I think is sort of off base. Having reasonable regulations that are enforced would be a very good solution whereas now we have rafts of regulation that are used to punish those not in the club - meanwhile all the TBTF banks sit and operate criminally with impunity.

 

 

Tue, 05/13/2014 - 18:47 | 4756823 malek
malek's picture

His argument is entirely correct.

Bill Black's biggest badge of honor is that he managed to get some guys sentenced to prison terms for some fraudulent role in the S&L crisis.
What he never realized nor realizes is that he won the battle and lost the war.

He had hundreds of agents working for years, and trials over years to -in his own words- prosecute "the 100 worst [S&L] fraud schemes."
That exercise was already drowning in complexity (and I'd add don't ask how many jury members even understood what they were deciding on), and only taught the criminal elements to add a few more layers of complexity and split responsibility to end up having nobody accountable anymore.

Only reduction of complexity in rules and regulations resulting also in clear responsibilities can get this fixed. That's not going to happen with"government is the answer"

Tue, 05/13/2014 - 12:16 | 4755264 NotApplicable
NotApplicable's picture

So... you're saying that if we only had a little more force, we might have reasonable regulations?

I'd like to point out that the problems we see occurred due to the presence of force, not due to a lack of it.

Why does everyone insist that Good can only be created from Evil means?

Tue, 05/13/2014 - 11:02 | 4754824 Duc888
Duc888's picture

 

 

Nozzle: "TurboTax Timmy is a white version of Obanga."

 

I respectfully disagree, the office of President holds no power any more.  "President" Bonobo does what he is told.  Geithner is someone who has more power than King O.  Geithner is a higher up in the criminal institution of banking.  Bonobo is a bank teller.

Tue, 05/13/2014 - 10:53 | 4754754 teslaberry
teslaberry's picture

how in FUCK can an entire article refer to "the sentence" without actually quoting the sentence. 

am i taking crazy pills?

 

Tue, 05/13/2014 - 13:48 | 4755679 Flybyknight
Flybyknight's picture

I might be wrong but I think this is the elusive sentence:  Geithner is outraged that Barofsky: “would requisition firearms and bulletproof vests for his antifraud troops.”

Blacks central point being that Timmays ignorance of the reality of fraud  and pettyness made him unsuitable for office

Tue, 05/13/2014 - 10:45 | 4754703 elwind45
elwind45's picture

These fucking Bankers and their stooges are trying to gloat without giving you the sense that THE JOKES ON YOU! ALL THE BAILOUT FUNDS WENT EAST AND WE ARE LEFT WITH THE BILL. You didn't get a house you got stuck buying the farm!

Tue, 05/13/2014 - 10:38 | 4754656 elwind45
elwind45's picture

Once the transfer from FRBNY to treasury the fall guy was in place! When the MBS insurance scam fell apart instead of feeding money to keep them solvent in the case AIG Bear and Lehman they raided these firms and left the debt for the taxpayer! To cover the theft then Treasury Sec. Paulson floated the blank sheet and Marshall Law meme because Congress was getting nothing from FRBNY and were left totally in the dark by the banks? All was going as designed! Once LEHMAN IS SUNK and its bonds impaired everything good or bad turns bad overnight and once AIG was taken down its massive stock portfollio was unloaded overnight as well and Congress and the people were made to suffer until they would capitulate to the banker produced carnage and throw open the treasury? It was fitting that the Fed showed its colors by sending TARP to the overseas banks which NONE WERE FAILED and by saving other countries banks first THEIR GOVERNMENTS were spared? This article is an attempt to frame this as a Tit4tat when in fact it was supposed to look like a armed robbery from the get go!

Tue, 05/13/2014 - 10:21 | 4754568 JRobby
JRobby's picture

Geithner is so stupid his penis does not even think.

Love reading Bill Black ripping him again. It is one of life's joys.

Tue, 05/13/2014 - 09:32 | 4754305 Okienomics
Okienomics's picture

What I find interesting is that when Bill Black discusses arming financial LEOs I feel strangely comforted. Government is, at its core, the entity in society with a monopoly on deadly force. As such, if it follows the law and serves the people, we appreciate and support it. But when it disregards the law and serves itself, we disdain and oppose it. It appears we are headed unwaveringly toward oligopoly on every level, with large organizations sopping up economic power, much like the interwoven boards of directors criminalized In the late 1800s. We have dismantled the laws of the trust-busting and depression eras which protected us and enabled the emergence of a powerful middle class. It's been a century since this country had such a groundswell of disgust for the the 1%, or the robber Barron's as they were once described. What is lacking is a trustworthy voice of strength and opposition to power saying, By The Almighty, I Will Root You Out! Keep the faith ZHers, previous generations have overcome equally impossible odds.

Tue, 05/13/2014 - 10:22 | 4754571 JRobby
JRobby's picture

Headed?

Tue, 05/13/2014 - 09:11 | 4754218 dizzyfingers
dizzyfingers's picture

"If Geithner wants to start a journey of personal redemption..." 

Sociopaths don't seek redemption.  

Tue, 05/13/2014 - 14:32 | 4755851 Raging Debate
Raging Debate's picture

Diizzyfingers - I am living proof they can but in my case I started when I was around 20. I was blessed with being curious about history and why people ibehave the way they do.

My being a sociopath had to do with fear. I couldn't always seem to focus on one task. It was a self-esteem issue. I felt the need to outcompete everybody else so they couldn't control me.

I have been told by many people I am a genius. Sociopaths will spend a lot of time and study to learn to control others. They are genius intellectually but damaged emotionally.

Don't mistake these people for dumb or just making mistakes in judgement. At times I used it to get ahead of the curve knowing where it was going and exploit grey areas of the law. At this point in my life if I can't offer value in business I don't do it. I was almost homeless at one point and my GF was suprised I wasn't more alarmed, she said I was almost cheerful about it. I was! I had become an honest man! I could look in the mirror and admit my weaknesses which also brought into focus my strengths. I figured it out and it was hard. I had to learn databases. Not easy over 40 but I got a few chill pills to deal with the anxiety and began banging away.

Asking people who are in power, (sociopaths) to step down causes them terror, a temporary feeling of loss of control, it triggers that underlying emotional damage. The response is to put up bills like NDAA and police state. You dying to attempt to stop the robberies does not factor into there head. Like at all...

Tue, 05/13/2014 - 15:57 | 4756178 dizzyfingers
dizzyfingers's picture

Raging:

My comment wasn't a dis, I'm aware sociopaths are smarter than most people. I have no doubt Timmy is brilliant and he probably can exercise a great deal of charm to get what he wants, but his power is immense so he damaged millions of people through the fulfillment of his mission. He is what he is.

Have known a number of sociopaths. Glad not to live with or work with them, but they are very interesting to know. 

Good luck with your business mission.

Tue, 05/13/2014 - 09:11 | 4754217 Vendetta
Vendetta's picture

"condemning Barofsky and his LEOs demonstrates that Geithner has sunk to the level of loathsome"

I seriously doubt Geithner's character stripes have ever been different from what they are now.  The only difference is people like Mr Black see them for what they are more clearly.  What is most disturbing is that the political and financial system still hold the pond scum in high regard.  That is what must change as there will always be pond scum floating around trying to kill the fauna for self serving interests.

Tue, 05/13/2014 - 09:09 | 4754213 NEOSERF
NEOSERF's picture

No one in government works for the American people.  They work for the institutions THAT WORK FOR THE AMERICAN PEOPLE.  Thus if there is a breakdown, it is the institutions fault vs. the elected officials.  Much like banks that are propped up but won't lend to people with 400 credit scores.

Tue, 05/13/2014 - 09:21 | 4754254 dizzyfingers
dizzyfingers's picture

"Thus if there is a breakdown, it is the institutions fault vs. the elected officials."

No, see... it's the individuals who do the wrong (or right) things. Institutions, despite what the Supremes think, do not make decisions and carry out actions. People do.

Tue, 05/13/2014 - 19:00 | 4756873 Milestones
Milestones's picture

Very valid, well made point.              Milestones

Tue, 05/13/2014 - 08:44 | 4754108 NOZZLE
NOZZLE's picture

TurboTax Timmy is a white version of Obanga. 

Tue, 05/13/2014 - 08:39 | 4754080 NoWayJose
NoWayJose's picture

History will catch up with Geithner and Bernanke once the inevitable conclusion plays out. The Titanic did not sink immediately, but the captain still got blamed. What Timmy and Ben did together was to take a ship that may have had a few leaks, and ram it into an iceberg. The pumps are running furiously now, but the fate of the ship is now sealed.

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