"We will make mistakes."
Treasury Secretary Timothy Geithner's remarks to the media did not please Mr. Market, did not answer critical questions about the Treasury and Federal Reserve plans to capitalize the failed banks, did not clarify the White House's position about what it will do for the mortgages at risk, the mortgages already in failure and the whole of the housing market going forward. The three-legged stool was on stage, but there was just an outline of the metaphor. Mr. Market needs the facts to seek out the advantages of found inefficiencies. That is financial capitalism. Without details, what we got from Mr. Geithner is a heavy-handed scold who is light on his feet and on substance. Also, Mr. Geithner was drearily clear that he will make "mistakes."
"...We will have to adapt our program as conditions change. We will have to try things we've never tried before. We will make mistakes. We will go through periods in which things get worse and progress is uneven or interrupted...."
Not a bountiful beginning. Mistakes such as today's puffy restatement of
goals without a visible plan to achieve the goals? S&P off 5% with Asian and European sell-offs to follow? You only get
one chance to make a first impression. The word on the Street right now is that the Obama
administration has "squandered" its first, best chance to take command. "Squandered." A word that leads quickly to "lost." The pithy Larry Kudlow is reported to have declared that Geithner "bombed." The sagacious and diplomatic Martin Wolf,
Has Barack Obama's presidency already failed? In normal times, this would be a ludicrous question. But these are not normal times. They are times of great danger. Today, the new US administration can disown responsibility for its inheritance; tomorrow, it will own it. Today, it can offer solutions; tomorrow it will have become the problem. Today, it is in control of events; tomorrow, events will take control of it. Doing too little is now far riskier than doing too much. If he fails to act decisively, the president risks being overwhelmed, like his predecessor. The costs to the US and the world of another failed presidency do not bear contemplating.
Absent Certainty.
What result to all of this?
While we are at it, we might as well make some wishes at the Fontana de Trevi.
Isn't that, more or less, the same?
When my kids were small they used to refer to the sun as "Mr. Sun" and the moon as "Mr. Moon". Politicians haven't yet figured out a way to take credit for "Mr. Sun" or "Mr. Moon". Therefore, these remain quite uninteresting to the ruling political class. "Mr. Market", as I see it, is quite similar to "Mr. Sun" and "Mr. Moon" in that he is just what he appears to be (like the enlightened Buddha himself).
He is always in perfect balance; a perfect predictor of future fiscal activity. "Mr. Market", a hermaphroditic creature, doesn't care whether or not he produces golden eggs for human consumption. He only cares about keeping himself in balance and maintaining his ability to precisely predict the future. After all is said and done, market logic will likely outlive human beings who may yet choose to choke the very life out of each other. This is not "Mr. Market's" problem who views all things dispassionately.
Politician's lie when they take credit for "Mr. Market's" performance, the same as they would be lying if they were to take credit for "Mr. Sun" or "Mr. Moon" (or ‘global warming’, for that matter). "Mr. Market" only lays golden eggs for those who understand that these are the blessings of a relatively free people; that, where (what we would call ‘successful’) markets are concerned, the drive and direction must originate at the bottom with the people, and not from the top (down); that when the pyramid is stood on its head (as in the socialist model), "Mr. Market" will mutate into a perfectly balanced (dancing) bear that happily devours the human spirit, and all it is capable of.
Did I hear correctly what the esteemed C Schumer said about the "chattering class" and how the American people don't care about a little pork in "Assimilatus"?
These people are reprehensible and need a real good spanking (and not the kind they get from their Dom)
Back in September 2008, the President Bush was shown a piece of paper that predicted the collapse of the American economy by the end of that very day and a similar collapse of the entire world economy within 24 hours. He was urged to move fast (invoke martial law, if necessary) in order to avoid total financial meltdown. The pell mell sequence of events that would follow is pretty well documented. The original event, however, still remains shrouded in mystery. What exactly was the president shown (told) - based on what; by whom?
Unlike the 9/11 attacks, the result of which could be readily appreciated by the obvious wreckage of smoldering brick and mortar, the suspicion persists that the president was handed a fiction which would only become real by his response. This suspicion gains credibility when we factor in the timing (just before U.S. elections) and the raid on the U.S. treasury that has been ongoing ever since. And, despite all this, we are told that little has been achieved to mitigate the danger. It reminds us, perhaps, of the criminal who in the dead of night relieves the victim of his wallet by brandishing a gun carved in soap.
And, even if it can be conclusively shown that a run on some under-funded money market obligations caused the crisis, it might be instructive to know who (Soros? Schumer?) exactly started the run and where it might have begun (Chinese hackers?). John, you might serve us all well by looking more closely into the genesis of this so-called crisis. You might even come up with some names. 'Follow the money' is always a good approach. In this particular case, however, the motive might have been more political than anything else.
Peter Koelliker - that's the way to think Man!
"Follow the money" indeed, follow it to the Federal Reserve, follow it the Bank of London and finally follow it to the Bank of International Securities. The International Bankers designed this disaster and the taxpayers have to bail them out. (BTW, the Federal Reserve is a private institution; none of the Board members pay taxes and they create money out of thin air, Americans must pay interest on this 'fiat' currency.)
Sure it is political. Notice President Obama hasnt changed any of the Bush's more important executive orders yet. The Martial Law order is still in place in case of economic, political or terrorist calamity; the White House is still under the Continuity of Government and has been since 9/11; Northcom still has 20,000 battle-heartened troops ready to supress the ever-growing population anger against said Bankers.
JB, I agree with Peter, follow the money.
No appears to have mentioned this point but has anyone notice that all these bailout companies were in fact companies who have been subject to intense government regulation/interference.
may be so bold as to say this was the ultimate plan all along... Government attempt to foul these industries into utter collapse and seize control...
States and health care are prime targets.
Have we become trapped in Afgha with our supply routes cut off?