Obama and Geithner: Government, Enron-Style

[Arraya]

In other words, Geithner and Obama are behaving like Lehman executives before the crash of Lehman, not disclosing the full extent of the internal problem in order to keep investors from fleeing and creditors from calling in their chits. It’s worth noting that this kind of behavior – knowingly hiding the derogatory truth from the outside world in order to prevent a run on the bank – is, itself, fraud!

This is exactly the mindset that led Lehman to the abuses of the “Repo 105” accounting trick, in which loans were disguised as revenues in order to prevent the outside world from knowing the dire state of the bank’s balance sheet.

Now Obama and Geithner are engaged in the same sort of activity, only they’re trying to prevent a run not on an individual bank, but the entire American financial services sector. Geithner seems really to believe that if fraud were aggressively policed, and the world made aware of the incredible extent of the illegality in our markets, that international confidence in the American financial sector would plummet and our economy would suffer – and suffer, incidentally, on Barack Obama’s watch.

Read more: http://www.rollingstone.com/politics/blogs/taibblog/obama-and-geithner-government-enron-style-20111220#ixzz1iTSqGvL4

[briansd1]

Where do we run to?

[Allan from Fallbrook]

Arraya: And here come those pesky toxic assets again. The Fed has knowingly slurped up billions in near worthless assets, all in the hopes of sustaining confidence in the system as a whole. The ECB is in a similar position, having acquired massive amounts of valueless bonds, also in the hope of pushing the illusion of a solvent Eurozone.

While the truly clueless discuss debt monetization, the real focus needs to be on the value of the debt itself. We’ve been gorging on debt globally for years, but the reality is, there is little of true value underpinning the whole enterprise. There is no “there” there.

I’m watching China. When that place goes, its gonna get real ugly, real fast.

[SD Realtor]

Come on Arraya…. Really! Don’t bring us all down man.

All you have to do is read recent threads. Clearly the majority of people believe lock stock and barrel that the course of actions taken were the only alternatives. The image of a svelte president is what excites people. American think that we can inflate the value of these crappy assets to deal with the debt. Or even worse we just write the debt off or print more money. The reality that this is the last bubble is apparent to some but not others.

[Allan from Fallbrook]

[quote=SD Realtor]Come on Arraya…. Really! Don’t bring us all down man.

All you have to do is read recent threads. Clearly the majority of people believe lock stock and barrel that the course of actions taken were the only alternatives. The image of a svelte president is what excites people. American think that we can inflate the value of these crappy assets to deal with the debt. Or even worse we just write the debt off or print more money. The reality that this is the last bubble is apparent to some but not others.[/quote]

SDR: Dude, you gotta turn your /sarcasm on, or I start reading you literally!

Obama is svelte, though, isn’t he? Not our “svelte” (the Piggs poster), but trim and vital, thus, he must be a good leader. He has what my mom used to call “vim” and “vigor”. Maybe a little “moxie”, too. Those qualities will be valuable when the feces hit the rotary oscillator again. And they will. Soon.

[SD Realtor]

Well they may soon.. or maybe not. Again, I am not saying and I don’t hear you saying that there is an easy way out…. it is not dem or repub… it is just crappy and the way it is… kind of like a certain football team we all know… it sucked and it will continue to suck and we should all believe what we are told.

[briansd1]

[quote=SD Realtor]
All you have to do is read recent threads. Clearly the majority of people believe lock stock and barrel that the course of actions taken were the only alternatives.
[/quote]

Not the only alternative, but it was the road taken by the last Administration in 2008.

In 2008 with TARP, the country sped down the freeway in one direction. Once the momentum gets going, it’s not possible to reverse course without even more damage. It’s a fait accompli.

[quote=Allan from Fallbrook]
While the truly clueless discuss debt monetization, the real focus needs to be on the value of the debt itself. We’ve been gorging on debt globally for years, but the reality is, there is little of true value underpinning the whole enterprise. There is no “there” there.
[/quote]

We’ve been gorging on debts thanks to Alan Greenspan, ever since he was nominated by Ronald Reagan. The debt fueled unproductive activities. If that debt had gone to productive uses, there would be plenty of underpinning value.

[SD Realtor]

There you go Arraya! Nothing to see here.

[briansd1]

You guys are sounding like the Occupy movement. The system sucks, but what are we going to replace it with?

[quote=SD Realtor]Come on Arraya…. Really! Don’t bring us all down man.
[/quote]

But not to worry, we are the Shining City On The Hill because we have divine providence. God will continue to bless America as long as we honor him.

[briansd1]

[quote=Allan from Fallbrook]

Obama is svelte, though, isn’t he? Not our “svelte” (the Piggs poster), but trim and vital, thus, he must be a good leader. He has what my mom used to call “vim” and “vigor”. Maybe a little “moxie”, too. Those qualities will be valuable when the feces hit the rotary oscillator again. And they will. Soon.[/quote]

I betcha our svelte is svelte otherwise he couldn’t have chosen that screen name.

I had to look up moxie:
http://en.wikipedia.org/wiki/Moxie
http://www.urbandictionary.com/define.php?term=moxy
http://www.thefreedictionary.com/moxie

[scaredyclassic]

Our nation is like a man with huge pecs but emaciated buttocks.

[SD Realtor]

I think it is the other way around scaredy.

[Allan from Fallbrook]

[quote=walterwhite]Our nation is like a man with huge pecs but emaciated buttocks.[/quote]

Scaredy: Words for the day: Steatopygia and Callipygia. Both are right up your proverbial alley. So to speak.

[Allan from Fallbrook]

[quote=briansd1]

We’ve been gorging on debts thanks to Alan Greenspan, ever since he was nominated by Ronald Reagan. The debt fueled unproductive activities. If that debt had gone to productive uses, there would be plenty of underpinning value.[/quote]

Brian: Oy gevalt! Seriously? Blame the GOP? You have to see beyond narrow partisanship and get the long game being played here. Money isn’t red or blue, money is GREEN and it don’t care about partisanship, values or good and bad.

[briansd1]

I’m not blaming the GOP. I’m blaming the policies of the independent Federal Reserve. I’m blaming Alan Greenspan in particular.

I’m blaming the economic philosophy that led to the financial crisis of 2008 and the mess we have today.

[Author]

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