Wednesday, January 21, 2009

Most Forceful Course is Most Prudent Course: Geithner

[Post Summary]

The eye is not satisfied nor the ear filled
Ecclesiastes

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In prepared remarks presented before the Senate Finance Committee Treasury Secretary-designate Timothy Geithner relayed a sensibility I quite agree with:
"Senators, the ultimate costs of this crisis will be greater, if we do not act with sufficient strength now.

"In a crisis of this magnitude, the most prudent course is the most forceful course."

Unfortunately, Mr. Geithner essentially continues towing the status quo line ... playing "make believe" ... more or less sanctioning the validity of financial claims rescued by last year's Emergency Economic Stabilization Act (the despised $700 billion bailout).

Nowhere in Geithner's prepared remarks is there even the faintest recognition of fact revealing that the securities-based financial system is hopelessly bankrupt.

That's bad news for our financial future, friend. A Treasury Secretary Geithner puts in the offing much talk and little action. The "most forceful course" that could be taken toward this bankrupt enterprise called "Structured Finance" is Chapter 11. Yet Mr. Geithner gives no hint whatsoever this route will be taken.

If ever there were an Obama administration appointee belying "Change you can believe in," Mr. Geithner is it. We need a new Alexander Hamilton, not another Adam Smith...

—Tom Chechatka

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