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Well folks, that's the ballgame. Secretary Timothy Geithner, long time Wall Street flunkie (first time U.S Treasury Secretary) has made it clear. He loves the FIRE (finance, insurance, real estate) economy and doesn't want it diminshed. He's actually IN FAVOR of it's massively distorting and destabilizing influence with no benefit.

For those wondering why Geithner sabotaged real financial reform, you have your answer.

"I don't have any enthusiasm for ... trying to shrink the relative importance of the financial system in our economy as a test of reform, because we have to think about the fact that we operate in the broader world," Geithner said. "It's the same thing for Microsoft or anything else. We want U.S. firms to benefit from that." He continued: "Now financial firms are different because of the risk, but you can contain that through regulation." This was the purpose of the recent financial reform, he said. In effect, Geithner was arguing that we should be as comfortable linking the fate of our economy to Wall Street as to automakers or Silicon Valley.

What's the difference between Wall Street and automakers or silicon valley? Two of those groups produce useful products and services the other creates crisis by using the financial markets for gambling and shifts the winnings to their Top 1% clients.

This probably makes it "official" the Obama Administration is on Wall Street's side and sees Wall Street not only as important than Main Street, but more so.

A bet on Geithner going forward is a bet that the financial sector can regain its democratic legitimacy without being shrunk or radically restructured. Perhaps as much as the successes of the past two years, Geithner’s legacy will ultimately depend on how well Wall Street meets that test.

 Yes America would you like to get screwed again? To have FIRE - who make 40% of all campaign contributions - continue to buy your congress and President, get bailed out by said politicians in order to buy them again? What could go wrong?

Is this Change We Can Believe In? Methinks no. More of the same, stay the course, keep going with the FIRE economy.

Burn Baby Burn.

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Comment Preferences

  •  Tip Jar (8+ / 0-)

    The Top 1% and the United States of Inequality

    by FIREeconomy on Mon Feb 14, 2011 at 10:10:18 AM PST

    •  Could you provide a credible link (0+ / 0-)

      to your statement.

      To have FIRE - who make 40% of all campaign contributions - continue to buy your congress and President

      Looking at Open Secrets for the 2010 Congress using your definition of FIRE I get FIRE at 18% of campaign contributions.

      The most important way to protect the environment is not to have more than one child.

      by nextstep on Mon Feb 14, 2011 at 01:02:46 PM PST

      [ Parent ]

      •  Link (0+ / 0-)

        That figure is from Dylan Ratigan's show

        is one of the many times he claims that.

        Let's say it is 18% (not sure about that) that's still a lot of money.

        I'd also submit these Open Secrets figures:

        FIRE Campaign Contributions

        1. 2010: $201,698,707 (so far)
        2. 2008: $477,274,474
        3. Total: $2,429,541,217 (since 1990)

         Lobbying -2010

         1. Insurance: $85,629,523
         2. Securities & Investment: $56,090,247

         3. Real Estate: $31,395,884
             Total FIRE: $252,055,539

        The Top 1% and the United States of Inequality

        by FIREeconomy on Mon Feb 14, 2011 at 02:06:25 PM PST

        [ Parent ]

  •  I Keep Waiting For A Diary (2+ / 0-)

    That encourages people to do something, or proposes alternatives... it's clear that you chose your moniker out of passion for this particular issue.

    Is there anything to say other than, "We're all fucked," about the actual issues?

  •  change i can believe in? (3+ / 0-)
    Recommended by:
    semiot, alizard, FIREeconomy

    older pennies (before 1982) are worth three cents, nickels are worth seven cents - that's change i can believe in!

    wall street parasites sucking an increasingly large amount of value out of the real economy with the assistance of our hopeful administration? that's change i'd rather not be forced to think about much less believe in, but it seems to be the only movie in this theatre.

    professional sanctimonious purist

    by joe shikspack on Mon Feb 14, 2011 at 10:21:35 AM PST

  •  The President is proposing a (1+ / 0-)
    Recommended by:
    Regina in a Sears Kit House

    gradual elimination of Fannie and Freddie subsidies--cutting them loose, as it were.  They will either succeed or fail on their own.

    This is to be gradual, of course

    "Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity." --M. L. King "You can't fix stupid" --Ron White

    by zenbassoon on Mon Feb 14, 2011 at 10:35:42 AM PST

  •  TBTF, (2+ / 0-)
    Recommended by:
    Roger Fox, FIREeconomy

         Too Big to Fail or Taxpayer Bucks to FIRE ?

  •  His fundamental misconception (3+ / 0-)
    Recommended by:
    semiot, martinjedlicka, FIREeconomy

    "FIRE" (with the exception of the physical construction of buildings) is basically an overhead, a transaction cost, in the overall economy.  Some of those services are, of course, of value -- if there were no debt instruments, or publicly traded companies, or insurance, it would be a bit difficult to run a modern economy.  But measuring it using the metrics appropriate to a manufacturing company doesn't work -- we can tell how productive GM is by looking at the number and quality of the vehicles they produce, but a lot of financial products are fundamentally carcinogenic to the economy, as we've learned the hard way.

    Ultimately, the physical productivity of the economy (our capability, in terms of plant and equipment and workforce, to produce goods and physically realized services) is what counts.  FIRE is only valuable to the extent that it expands this capability.  Its output is measured not by its revenue or assets under management, but by the availability of capital and risk mediation to the real world economy.  Measured by this criteria, the FIRE industry is failing miserably and is very unproductive.

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