Tim Geithner Becomes Laughing Stock of the World

Tuesday, June 09, 2009

My irregular series "if it weren't so serious I'd be ROTFL (rolling on the floor, laughing)" may become a daily issue as long as we have such brains like that of US Treasury secretary Timothy Geithner, trying to fix a mortally broken financial system he profited from in the first place while being lax on his tax filings.
According to a Reuters dispatch from Tuesday, citing a story on the Bubble Street Journal's (WSJ) website, Geithner wants to push European bank regulators to put banks in the old world under more rigorous stress tests.
The Obama administration wants European countries to put their banks through more rigorous public stress tests to ensure that the institutions survive if the economy deteriorates further, the Wall Street Journal reported on its website.
U.S. Treasury Secretary Timothy Geithner is likely to discuss the issue in Italy later this week during closed-door meetings with finance ministers from the Group of Eight leading nations, according to the paper.
Geithner may face resistance from some of his European counterparts, who believe that publicizing the weaknesses of individual banks increases the risk that they will fail, the paper said.
Only last week Geithner was greeted with laughter when he told Chinese students that Federal Reserve Notes (FRNs) were a strong currency and nobody need not fear that this would change. Looking at the USD index (in the sidebar of my blog) I am afraid that young Tim's knowledge about the true developments of said fiat currency appears to be very limited. Has he overlooked that the USA has turned from the biggest creditor into the biggest debtor of the world since the time Geithner collected his first grades in primary and secondary school?
While it is a global faux pas to criticize others for their shortcomings when one hasn't done his own homework first, Geithner continues a bullying policy the world had thought to be over at the time former US president George W. Bush returned home to clear the brushwood's at his farm.
It is also a faux pas to get to the microphone, reminding others of a problem the Eurozone has already recognized. If the acting Treasury secretary would not only read MSM (mainstream media) but also blogs, he would have known since November 29, 2008, that
a report published by the European Central Bank (ECB) arrives at the conclusion that the stress testing methods of Eurozone banks are inadequate and have been introduced in some cases only after the beginning of the credit crisis in August 2007.
The report on "EU Banks' Liquidity Stress Testing and Contingency Funding Plans" carried out by the ECB's Banking Supervision Committee arrives at the sour conclusion,
that there is substantial room for improvement in both areas.
In the global ping pong of blaming the other side of the Atlantic for the mess we are in, here comes my pong to Geithner: Why did the US financial system and its regulators not include Fannie Mae and Freddie Mac in their "stress tests?" And as a last note, would you be be distressed after receiving 2 TRILLION FRNs (where the Fed refuses to publish who got how much!?) As I said, if it weren't all so serious because Europe and the USA will become the global backwater at the end of this crisis, I'd be ROTFL.


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