“Tim Geithner has outlived his usefulness. He is too connected to the bailouts of ’08. Bear, Lehman, AIG, TARP and even QE are all part of his legacy. That makes Tim a lightening rod. Too many Americans hate that part of our history.”
For anyone who still doubts government and Wall Street or Bay Street involvement in the market action over the past year in particular, it is recommended to read an article titled “Fed posts record profit of $46.1B for last year” from Associated Press.
Quoting from the article:
“The Federal Reserve made a record profit of $46.1 billion last year, reflecting money made off its extraordinary efforts to rescue the country from the worst economic and financial crisis since the 1930s, the central bank announced Tuesday.
The windfall gets turned over to the Treasury Department.
It marks the biggest profit on record dating back to 1914 when the Fed was created. The previous record profit — of $34.6 billion — was registered in 2007. In 2008, the Fed reported a profit of $31.7 billion.
The Fed says the bigger profit was primarily due to increased income from the securities it held last year.
Such income went up as the Fed’s holdings of securities mushroomed.”
Holdings of securites generally only “mushroom”; that is, grow fast, generally because of increased revenue and earnings or increased demand for the stocks. The former is lacking by the fact of just checking the price to earning ratio. It shows it must be increased demand. Indeed, the overriding theme of most “news” these days is about increasing demand for stocks.
Drumbeat to Boot Geithner Gets Louder, on Eve of Hearings on Disastrous Economic Crash
By Danny Schechter and Dylan Ratigan, AlterNet. Posted January 12, 2010.
Editor’s Note: Published below Danny Schecter’s article is Dylan Ratigan’s 5-point takedown of Geithner and why it’s time for him to go.
When a pitcher gets tired, starts throwing walks or being hit, most attentive managers take him out of the game. When policies break down, as in the case of the security system that failed to spot the alleged Christmas bomber, the president starts talking tough about the buck stopping here and orders to straighten out a failed system.
But when tens of thousands of workers, once again, lose their jobs, the people responsible get winked at, not wanked. The president is contrite, his rhetoric subdued, even as the recovery he keeps talking about goes south.
Yes, there needs to be a cabinet shake-up. It’s time to yank Treasury Secretary Timothy Geithner from the game, along with economic adviser Larry Summers. Their pro-bank, pro-Wall Street policies are failing. Isn’t it obvious? According to an AP investigation, their road construction projects have had no impact on the jobs crisis.
The establishment will lean toward a Republican to replace him like FDIC Chairman Sheila Bair, who has proven to be far more competent and outspoken than her counterparts.
Geithner acts like a stalking horse for the people responsible for the meltdown. It’s time to say sayonara, and appoint someone who has the people’s interests at heart. There is no shortage of capable and committed Democratic economists who can replace him. How about Elizabeth Warren or Joe Stiglitz or Brooksley Born or Simon Johnson or even, for op-ed’s sake, Paul Krugman?
Even Wall Streeters know Geithner is a dead man walking. Bruce Krasting, a foreign exchange and derivatives veteran writes on Naked Capitalism.com:
Tim Geithner has outlived his usefulness. He is too connected to the bailouts of ’08. Bear, Lehman, AIG, TARP and even QE are all part of his legacy. That makes Tim a lightening rod. Too many Americans hate that part of our history.
You can read the full story at Alternet