The world awaits a resolution from the fog of U.S. budget battles. The negotiating table was left in a further haze by Secretary Geithner’s comments. In no uncertain terms, the point man for the Obama administration made it “clear” that the White House will let the economy go over the proverbial cliff if tax rates are not increased on the nation’s wealthiest two percent. It is not a good negotiating tactic to back your opponent into a corner from which there is no escape. Immediately after the Geithner comments to CNBC’S Steve Liesman, legislative Republicans responded in a very negative fashion. If the negotiations are mere theater then let the economy feel the brunt of mandated austerity and the STOCK MARKET BE DAMNED. Best economic and budgetary policy cannot be made solely for the sake of saving the equity markets. Bad fiscal policy destroys wealth and jobs anyway so it may be better to push an economic downturn to finally get everybody focused on a genuine long-term reform.
Posts Tagged ‘Timothy Geithner’
Notes From Underground: Let’s Give Them Something To Talk About … Driving Over The Cliff
December 5, 2012Notes From Underground: FROM MERKOZY to MERDE???? (HAT TIP BC)
July 29, 2012Notes From Underground: George Soros and his Fascist Tendencies
February 12, 2012Yes, I know Athens is burning as some of the more violent demonstrators threw some Molotov cocktails and the media was given some photo ops so the situation can be understood by those too involved with life’s challenges to read. If that sounds acerbic it is because I have been writing about the Greek debt crisis since December of 2009 when the Chinese investment funds reneged on a promise to purchase $25 Billion of Greek bonds and the debt crisis was in full swing. Again, Athens may be the present battleground but the political and financial games are being played out in Paris and Berlin and of course in the offices of the IMF.
Notes From Underground: Europe Has the World Living On Hope
December 6, 2011I’M UP ON THE TIGHTROPE,ONE SIDES HATE AND ONE IS HOPEIT’S A CIRCUS GAME WITH YOU AND ME
Notes From Underground: Housing Is Making It As the Foundation of Obama’s Domestic Agenda … Why Hasn’t Geithner Been Replaced?
October 24, 2011The speeches by FOMC GOVERNOR TARULLO and Vice Chair Yellen were followed up with an Obama speech on a “major” REFI operation and many articles in the media. In today’s Financial Times, Larry Summers just happened to have a piece titled, “WHY THE HOUSING BURDEN STALLS AMERICA’S ECONOMIC RECOVERY.” It seems that the administration has awakened to the fact that the credit crisis has been wrapped in a housing crunch that has kept consumer demand lackluster at best. (Also known as the Geithner plan: Aid the banks first and maybe help the debt-laden consumer/homeowner somewhere down the line.)
Notes From Underground: Cramer, The Running Dog of the Governing Classes
September 14, 2011The potential for a big market-moving story was in the works but the usually aggressive, boisterous Jim Cramer, in his interview with Treasury Secretary Timothy Geithner, resembled a tea party at an American Girl store. It seems that when Cramer fears being audited he goes quiet. The questions about Europe were milquetoast, leading to ridiculous answers–“I am sure Europe will be there in three years.” It proved to be worthless and provided little clarification on the issues of “THE TWIST” and how the U.S. was going to act in concert with the Europeans to help resolve the effects of the severe credit crisis that is impinging global financial institutions and certainly European economic growth.
Notes From Underground: Irish Elections, Bahrain and the U.S. DOLLAR fails to RALLY
February 24, 2011All eyes have been focused on the MIDDLE EAST for its huge impact on OIL prices. There is a debate between those who believe that the OIL supply disruption is inflationary as energy prices create a rising price environment and those who believe that high energy prices are a tremendous drag on economic growth. NOTES FROM UNDERGROUND is in the camp that OIL supply disruptions are a drag on growth, especially in an environment of high unemployment and a severely stretched consumer. It is this fear that has roiled the stock market in the U.S. and put stress upon the global financial system. Emerging markets that are already feeling the impact of higher food costs will now have to deal with higher energy prices, which many governments already subsidize for its citizens. Will the situation in Bahrain be as economic disastrous as some analysts and pundits are claiming?
Notes From Underground: Going to the European prom; Merkel tells Sarkozy she has to wash her hair
June 7, 2010A previously planned meeting between Frau Merkel and President Sarkozy has been canceled as Merkel claimed to be too busy pushing through an €80 billion cut in the German budget that will take place during the next four years. The meeting between the European powerhouses was meant to resolve some ill will that had resulted from the Greek bailout and were undoubtedly the result of Sarkozy’s preening like a Peacock in thinking that he had bested the German political establishment. We will hear more about this as we approach the European summit scheduled for June 17-18. The Sarkozy-Merkel meeting has reportedly been moved back to June 14–we await further developments. It is of more than passing interest that it is Germany pushing hard for budget cuts as it is setting the bar ever higher for the profligate nations. The German banks, and now government, are on the hook for a lot of money so they are going to push for greater European austerity–this will not amuse U.S. Treasury Secretary Tim Geithner. Also, Europe has now determined that the €750 billion package to buy stressed debt is officially set up as a special purpose vehicle (SPV), so all that bond buying will be carried off the balance sheet of the ECB and this phrase reminds us of Enron. We will look into the plumbing the more info that becomes available.