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Geithner Blames CEOs For Financial Crisis

From MarketWatch:

Geithner says recovery still in early stages

Treasury secretary says health-care reform necessary part of healing economy

By Kate Gibson, MarketWatch

Jun 15, 2009

NEW YORK (MarketWatch) – The economic recovery is still in its early stages, with further pain still ahead – such as increasing joblessness – as the nation works its way out of the recession, Treasury Secretary Timothy Geithner said Monday.

"We’re two years into this. The process of repair and recovery will take time. "Unemployment will continue to rise even as the economy recovers" Geithner told a gathering sponsored by Time Warner in New York.

Questioned about his recent journey to Asia, Geithner downplayed concern that China, the largest foreign purchaser of U.S. government bonds, was worried about the increasing level of U.S. debt, saying officials in Beijing understand the dire situation and the need for the remedies taken. "They recognize their fate is closely tied to the fate of the U.S," he added. Read about Geithner’s weekend with the G8.

Asked about the reluctance to lend on the part of the financial institutions that took government rescue funds, Geithner declared that there is more credit available currently than when the economic crisis was at its height.

With Americans saving more and financial institutions lending less, banks and households alike are adjusting their practices in ways that, while beneficial in the long term, are likely also slowing down the pace of the recovery, Geithner said.

"This crisis was born in part because households around the world took on too much debt. Demand for credit is falling as people live within their means," he said.

"I wouldn’t want any family to go through this just to learn to live within their means," said Geithner, who added one healthy adjustment would likely be "people are going to be more focused on what they do than on what they earn."

Asked about executive compensation and whether it may have helped create the near meltdown of the U.S. financial system, Geithner said the Obama administration is determined to adopt a regulatory framework to prevent a repeat of the current scenario.

"We run an economy that relies on the market. But basic protections failed, and supervision didn’t do what it was supposed to. Compensation overwhelmed those basic checks and balances. We want there to be risking taking in our economy, but within a framework of better protection."

"We should be able to design a system where there is more clarity about the rules of the game," he added.

Saying President Obama would speak Wednesday about the consumer side of proposed reform, Geithner said "consumer credit generally was the focus of lots of bad practices, (including) predatory behavior. We want to stop that."

Geithner also linked an overhaul of the nation’s health-care system to bringing the nation’s fiscal house to order, saying "the path to fixing the economy does go through health care at some point." …

What a bunch of confusing and disingenuous remarks, even by the standard’s of the Obama administration.

"We’re two years into this. The process of repair and recovery will take time. "Unemployment will continue to rise even as the economy recovers" Geithner told a gathering sponsored by Time Warner in New York.

What is he referring to here? What are the “two years”? Is he saying that the recession has been going on for two years? Or the recovery? Or will the recovery take two years?

Or is it, as we suspect, just words.

Asked about executive compensation and whether it may have helped create the near meltdown of the U.S. financial system, Geithner said the Obama administration is determined to adopt a regulatory framework to prevent a repeat of the current scenario.

You see, the entire financial crisis was caused by CEOs making too much money.

And we have to fix things so that these greedy capitalists don’t screw us over again.

This article was posted by Steve on Tuesday, June 16th, 2009. Comments are currently closed.

10 Responses to “Geithner Blames CEOs For Financial Crisis”

  1. Voice of Reason says:

    Heya S&Lers!!! Long time no see!! Just popped in to see what y’all were talking about over here and couldn’t resist sounding off about this.

    Steve,

    You want to know what the two years in was about? Think back to what happened just over two years ago in January of ’07.

    I think he let slip a VERY telling tidbit there. I think all of this mess truly has been two years in the making. I think the left worked long and hard exercising their Cloward-Piven muscles after January ’07….actually they have been at it since before FDR, but anyways……..they got the crisis they needed to get their man in the WH. With a complicit media and lazy electorate, they managed to put their guy in the WH and now all of a sudden everybody is going, “WTF??!?!?!?!? What in the world is going on?????”

    I think Timmy got taken to the woodshed after this one……especially if anyone else puts the pieces together.

    So what happened in Jan. “07 that VoR thinks Timmy mistakenly alluded to here………Dems take control of Congress.

    I would ask ANYONE who doubts, look at the state of the economy in December ’06 compared to December ’08 and tell me what was different. And what was the matra all last election season and continues to this day?? Bush screwed the pooch and we are just picking up the pieces.

    Well that works on their lickspittles because they don’t understand how govt. works and think the President makes law. Now Bush has my ire for not wearing out his veto pen…..but that is another story. So do congressional repubs for screwing the pooch when they had the keys to the kingdom and leaving even a crack in the door that these cockroaches could skulk in under.

    But truth be told….this all began to come apart when dipstick Americans, listening to Pelosi Galore’s non-stop blathering about culture of corruption, put these assclowns in power. History will bear this out but will it be too damn late for us when it does finally come to light who sent us carreening off the cliff.

    Anyway…..that’s my opinion. For what it’s worth.

    God bless,
    VoR

    • Reality Bytes says:

      Somebody get VoR an RBtini! The time is now for the “Urine or Your Out” Welfare Reform Act of 2009:

      I work, I get paid. I pay taxes and the government distributes my taxes as it sees fit. As many of us income recipients, we must submit to drug testing & must pass a random urine test in order to secure & retain income from the employer.

      But what about Welfare recipients? Shouldn’t one have to pass a urine test to get a welfare check because I have to pass one to earn it for them?

      Please understand, I have no problem with helping people get back on their feet. I do, on the other hand, have a problem with helping someone sitting on their ass – doing drugs, while I work. . . . Can you imagine how much money each state would save if people had to pass a urine test to get a public assistance check?

      Hence the ‘Urine or You’re Out’ Welfare Reform Act of 2009.

      (PS: The writer is annonymous sent to me by email. Better than the RB Immigration Reform Act of 2008 don’t you think?)

    • proreason says:

      VoR for President!!!

    • Steve says:

      “So what happened in Jan. “07 that VoR thinks Timmy mistakenly alluded to here………Dems take control of Congress.”

      I think you’re right.

      Great point(s)!

  2. bronzeprofessor says:

    Geithner and his cohorts seem allergic to taking responsibility for things. We need to make an antihistamine for their condition.

  3. proreason says:

    “We run an economy ”

    Yep, that’s the problem. You, drooling Barney, OSorosAcron, and the Fed ran the economy into the ground.

    But you kind of enjoy being king and being able to get away with your lies and criminal actions, don’t you? How much taxes has the dart board said this year for you, Timmy?

    If you wanted to correct the problems, which you don’t, you would get out of the frigging way, instead of qaudrupling down by destroying the best health care system in the world, which by the way, doesn’t need to be fixed. The only reason people think it needs to be fixed is because government a) screws it up and b) shouts from the rooftops 48×7 that it’s a disaster caused by somebody else.

  4. Right of the People says:

    You just knew this was coming, didn’t you? I mean I’m surprised it took this long for them to come out and lay the blame on the greedy capitalists.

    What in the hell is this monkeyspooge talking about, “the path to fixing the economy does go through health care at some point.” …???????? How can spending trillions more and destroying our healthcare system help the economy. Timmy needs an economics lesson.

    VoR has a great point about the 2 years. If I believed in conspiracy theories this sure fits as one. What am I talking about, hell this IS a conspiracy?

    Things are happening too fast and the damage being done will take years to reverse, if it can be reversed at that. We need to do something and quick.

  5. Reality Bytes says:

    Seems today, your vote gives you a choice. You can pick the ignoramous, or the liar. WE GOT BOTH IN 2008! Yippee!

  6. BigOil says:

    We run an economy that relies on the market. But basic protections failed, and supervision didn’t do what it was supposed to. Compensation overwhelmed those basic checks and balances. We want there to be risking taking in our economy, but within a framework of better protection.”

    We should be able to design a system where there is more clarity about the rules of the game,” he added.

    An ego that is required to make statements like these is hard to fathom. Working for a large corporation, I understand what an enormous undertaking it is to change a single organization – and there is a substantial risk what you end up with will be worse than what you started with.

    Tiny Tim Geithner, a lifelong bureaucrat, talks like he is going to sit down with the community agitator over lunch and redesign our 13 12 trillion dollar economy.

    The axiom ‘first do no harm’ is foreign to Obama and his clown posse.

    • proreason says:

      BigOil…..good points.

      I’ve been through numerous corporate change programs, all well intentioned and motivated to make the companies more profitable. Few had any impact at all.

      For somebody to think they can design a new system for the world financial markets is really the height of arrogance.

      The risk of an explosion is about 100 times more likely than the chances of improvement. Sarbannes Oxley is a good example. Many people think that legislation contributed to the meltdown, and it was a relatively minor effort to improve the transparancy of corporate finances. It has also increased business’s costs by tens of billions of dollars. That’s money that could have been invested in useful products or been paid to employees.


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