[quote=jpinpb]I caught a slight clip on the BBC about Geithner trying to get someone in charge to regulate global banking. One person that has oversight. Maybe it’s just me. I’m having a little trouble understanding that.
I mean, WTF. Are we already so dumified that that sounds like a good idea?
Why don’t we just publicly put Rockefeller in charge and get it over with.
The treasury secretary said the existing financial system had “failed in basic, fundamental ways”.
“These failures have caused a great loss of confidence in the basic fabric of our financial system,” he said.
He also talked of “unwise” risk-taking and a failure of “market discipline”.<---Is he talking about the unwise risk his old employer recommended.
The funny part is Giethner worked for the Fed during the bubble and here is part of the Fed's job description:
Preventing asset bubbles
The board of directors of each Federal Reserve Bank District also have regulatory and supervisory responsibilities. For example, a member bank (private bank) is not permitted to give out too many loans to people who cannot pay them back. This is because too many defaults on loans will lead to a bank run. If the board of directors has judged that a member bank is performing or behaving poorly, it will report this to the Board of Governors. This policy is described in United States Code:[26]
Each Federal reserve bank shall keep itself informed of the general character and amount of the loans and investments of its member banks with a view to ascertaining whether undue use is being made of bank credit for the speculative carrying of or trading in securities, real estate, or commodities, or for any other purpose inconsistent with the maintenance of sound credit conditions; and, in determining whether to grant or refuse advances, rediscounts, or other credit accommodations, the Federal reserve bank shall give consideration to such information. The chairman of the Federal reserve bank shall report to the Board of Governors of the Federal Reserve System any such undue use of bank credit by any member bank, together with his recommendation. Whenever, in the judgment of the Board of Governors of the Federal Reserve System, any member bank is making such undue use of bank credit, the Board may, in its discretion, after reasonable notice and an opportunity for a hearing, suspend such bank from the use of the credit facilities of the Federal Reserve System and may terminate such suspension or may renew it from time to time.
The punishment for making false statements or reports which overvalue an asset is also stated in the U.S. Code:[27]
Juxtapose that with Greenscam’s 2004 “the housing market is sound and ARMs are great” speech.
So what we have is an agency who’s job it is to protect from asset bubbles do everything is can to create one and then come back in as Secretary of the Treasury and demand more power for the problem they created. HAHAH
While simultaneously his other employer the IMF is recommending a world currency reserve with China, the country his father spent 30 years in building up. Oh, and his major in school was east asian economics and he speaks chinese.
Go to sleep america it was (insert political party of choice here) fault.
Turns out crises are wonderful mechanisms for power consolidation.
