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View Diary: The obstructionist's dilemma (307 comments)

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  •  Obama is daft for hiring Geithner & Summers. (0+ / 0-)

    The structural defects and distortions that need to be corrected are a manifestation of the basic perversity of banking, an organization that counts its profitability in the debts that it is owed - what it loans. Itis risk intensive, so enter the credit default swap (and its evil twin, the naked credit default swap), a bet that the home loans that a bank made would be foreclosed! Not only that, but the banks could buy cds's without any substantive need for risk aversion through their securities divisions!

    This is just like letting a CEO short his own stock and drive his own company into a ditch for profit!  

    The most-recent subversion of the social contract commenced in 1995, with the repeal of Glass-Staegall. It progressed in 1999, also UNDER CLINTON, with the Commodities Futures Trading Modernization Act (CFTMA).

    Now, Obama has nominated Gary Gensler to head the CFTC. Gensler actually teamed with Phil Gramm to advocate for the CFTMA.

    And Tim Geithner actually presided over the debauch that morphed from an innocent game of spin-the-bottle to a full-blown s & m dungeon! And Obama wants me to believe that Tim Geithner will help to reform the banks? In a pig's eye! Geithner and his ilk are the very definition of the problem "policies that have got us into this mess," as Obama refers to it.

    Notwithstanding his gravitas, Geithner and all his Greenspan buddies now in the administration ought to be permanently banned from the securities industry, but, instead, they are rewarded with the highest offices in the land!

    Pure Moliere!

    "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." -Thomas Jefferson

    by ezdidit on Sat Feb 14, 2009 at 04:23:33 PM PST

    [ Parent ]

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