Friday, June 26, 2009
Not a Fan of Geithner
James Quinn realizes there is some skullduggery afoot (HT2 Tim Swanson). I haven't read the whole thing yet, but so far he's my favorite part:
Part 3 of the plan was the fake stress test conducted by Tim Geithner, his Treasury Department, and the Federal Reserve. The entire stress test was a publicity stunt conducted to provide a false sense of confidence in the largest banks so they could fool investors into pouring billions of new capital into their bankrupt banks. The assumptions used in the stress test were stress free. Unemployment is already higher than the worst case scenario. The stress test time frame ended in 2010. The next wave of mortgage resets and foreclosures will hit in 2011 and 2012.
Comments:
Indeed, the entire operation from the Fed lending facilities to TARP to stress test had a single, solitary goal- make the banks look as solvent as possible in order to facilitate their raising of additional capital from private sources.
If a private entity did this, they would be perp-walked from the courthouse.
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If a private entity did this, they would be perp-walked from the courthouse.
# posted by 
: June 26, 2009 at 11:16 AM
: June 26, 2009 at 11:16 AM Subscribe to Post Comments [Atom]
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