Geithner Invokes Chicago Cubs’ Battle Cry: "Wait Till Next Year"
Courtesy of Mish
Geithner admits banks are overleveraged but in his Orwellian world, deleveraging is the wrong thing to do because "the world is fragile".
Please consider New bank capital, leverage limits coming in 2010: Geithner.
Government officials will not set new capital and leverage standards for financial institutions until next year, Treasury Secretary Timothy Geithner said Thursday.
"The world is a little fragile; people aren’t willing to take enough risk now, and we don’t want to do anything that would push people to delever," Geithner said to Fox News Sunday anchor Chris Wallace at an event in Washington hosted by the Atlantic magazine in partnership with the Aspen Institute and the Newseum. "We’ll have the agreement on the numbers, but it won’t happen until next year; in the absence of fragility."
Geithner acknowledged that existing bank-capital restrictions were "too low and easily evaded."
"It’s going to take a while to come out of this because we are saving more money, something we have to do," he commented. "Growth is going to be slower coming out of this, and it is a reasonable expectation that this is going to take a while."
"It’s not a tenable situation for the government to be in the business of running large parts of the economy, and we won’t do it," Geithner said.
Geithner finished speaking the same way he always does, with a lie.
"We won’t do it" is a blatant lie. The government has its direct hand in autos, banks, insurance companies, stock brokers, home builders, and the entire mortgage industry.
The first thing any regulator in his right mind would do would be to dissolve Fannie Mae, Freddie Mac, and the FHA. Instead, leverage was increased to allow loans up to 125% of assessed value and the mortgage lenders of only resort are the GSEs and the FHA.
It was idiotic to take over AIG yet the government did. Cash for clunkers was economic idiocy but the government did that too. Ditto for screwing GM bondholders in favor if the union. We had to do those things under the guise "things were too fragile".
"We’ll have the agreement on the numbers, but it won’t happen until next year; in the absence of fragility."
Chicago Cubs Battle Cry
It’s October, and like every October since 1908, Cubs’ fans cry "Wait Till Next Year".
Will next year be any different, for either Geithner or the Chicago Cubs?
Who has the better chance?
In case you are keeping score, there have also been "rain delays" in mark-to-market rules. In August of 2008 the FASB decided it’s Not Practical To Tell The Truth.
Mark-To-Market rules are still not in place.
It’s no surprise in this corner, but there has been another "rain delay" with the SEC Openly Inviting Corporations To Lie.
Looking for honest reporting?
Do as Cubs’ fans do every October, Wait Till Next Year.
