A few days ago we wondered if Tim Geithner was a pathological liar, an idiot or just confused. Today we may be one step closer to getting the answer. In an unprecedented gesture of magnanimity, also known as an expression of the US banking cartel's control over the world, the Treasury Secretary will advise Europe to conduct the same sham exercise in fraud and lies, as America did when it conducted its own Stress test, which found that all US banks are perfectly solvent (as long as they all have direct access to the Fed printing press). Geithner's thinking is that once Europe also "realizes" that each and every bank is "perfectly viable" despite all the evidence to the contrary, that investors will say "boy, we sure look like idiots being worried, when the very credible EU itself says everything is fine." Of course, this is the opposite of what will happen. It does, however, bring questions to the legitimacy of our own stress test, which as everyone knows was a well-engineered goal seeked sham designed to do nothing but to also fool investors into a false sense of calm that the ponzi still has some life in it.
U.S. Treasury Secretary Timothy Geithner will urge European officials this week to conduct some form of banking system stress tests, CNBC reported on Tuesday, citing an Obama administration official.
The stress tests, however, would have to differ from those conducted by U.S. regulators in the spring of 2009, because Europe lacks a huge bailout fund like the $700 billion Troubled Asset Relief Program to plug any capital deficiencies found, CNBC said.
Geithner and other Treasury officials routinely cite the U.S. stress tests, which helped open the door for private capital to return to the banking sector, as calming intense market turmoil caused by the financial crisis.
It is refreshing that the SecTres has at least realized he was definitvely wrong when he said that Europe's troubles are contained to Europe. So because he was completely wrong then, we should certainly trust his judgment now.