By: Richard Baum...February 10th, 2009
Treasury Secretary Timothy Geithner speaks during a news conference in the Cash Room of the Treasury Department in Washington, February 10, 2009.
The U.S. Treasury Department on Tuesday unveiled a revamped financial rescue plan to cleanse up to $500 billion in spoiled assets from banks’ books and support $1 trillion in new lending through an expanded Federal Reserve program. But initial market reaction reflected investors’ doubts about the plan, with stocks falling around 3 percent after the announcement by Treasury Secretary Timothy Geithner.
“For all the rhetoric that this is a new plan, they’ve done nothing but rehash and expand the old procedures,” said Steven Ricchiuto, chief economist at Mizuho Securities USA.
Carl Lantz, U.S. interest rate strategist at Credit Suisse in New York, said details of a proposed public-private investment fund for mopping up toxic bank assets were “very vague”.
“It sounds like for this public-private investment fund they are still exploring a range of different structures for the program or seeking input from market participants,” he said. “That’s the the kind of stuff we heard on TARP One and suggests that given all this time they still don’t have anything very specific nailed down.”
James Ellman, president of Seacliff Capital in San Francisco, criticized the proposals. “Investors want clarity, simplicity, and resolution. This plan is seen as convoluted, obfuscating, and clouded. We know that Geithner was able to overrule many other Obama administration people, and said we should not be tough on bank equity holders or bank management. So equity holders got a better deal, and it’s still not a good deal.”
The immediate result of Geithner's unveiling was a significant drop in the stock market, which should be no surprise, because he is part of the problem, along with Henry M. Paulson, Jr, ' ex secretary of the treasury' and Ben S Bernanke 'Chairman, Board of Governors, Federal Reserve System'. All three of these unsavory characters attended the latest BILDERBERG MEETING at Chantilly, Virginia in June 2008.
~BREAKING NEWS~
Bernanke Begins ‘Thorough Review’ of Fed Disclosure (Update1)
By Craig Torres...
Feb. 10 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke initiated a review of the information it provides the public after lawmakers criticized the central bank’s disclosure policies during the unprecedented expansion of its holdings.
Bernanke has invoked emergency authority and more than doubled the size of the Fed’s balance sheet to $1.8 trillion to combat the worst credit crisis in seven decades. His moves have prompted concern that the central bank is encouraging excessive risk-taking, distorting pricing in financial markets and jeopardizing the Fed’s independence. The Fed hasn’t disclosed many of the assets and participants in its programs.
Hmmm, so what's to hide, is Bernanke telling us that this is a military secret? Excuse me while I jump out of the frog water...G:
ReplyDeleteYup. What the Builderburglers decide at their "meetings" (which doesn't make policy *cough*cough* supposedly), is deemed ultra-secret on pain of death.
ReplyDeleteIt's hard to believe in 'coincidence theory' when shite like this happens and it bolsters the idea that all is planned and controlled, which isn't what's happening.
Supposedly.