Well, that’s not a direct quote, but it could be considered an accurate paraphrasing of Treasury Secretary Timothy Geithner’s opinion column in the Wall Street Journal today.
….as a nation we borrowed too much and let our financial system take on irresponsible levels of risk. Those decisions have caused enormous suffering…
Translation: Over extended consumers mixed with deregulation put us in the ditch. Unsurprisingly, Geithner and his bosses have yet to express even the slightest ounce of recognition that the deliberate “progressive” socialization of the mortgage market over the past few decades had anything to do with bad banking practices. What giant pool of risky mortgages would AIG have securitized if the Federal Government hadn’t flooded the mortgage market with a trillion dollars back in 1998!
Anywho…what is the Obama-Biden-Geithner plan to get us out from under this mountain of debt which only evil greedy American private sector captialists are to blame for? Borrow more money of course.
We started a major new lending program with the Federal Reserve targeted at the securitization markets critical for consumer and small business lending. Last week, we announced additional actions to support lending to small businesses by directly purchasing securities backed by Small Business Administration loans.
So the answer to the problem is more of the same. A lot more of the same.
It is hard to know what is depressing the market more right now, the obvious attempt by government to deny their role in this crisis, leading to their repeating the same disastrous policies, or the way they have systimatically attacked private citizens they do not like.
Speaking of government attacking private citizens they do not approve of, now that the Obama-Biden administration has alienated the private sector with their incompetence and maliciousness, they are hoping to enlist the private sector in the bailout.
Today, we are announcing another critical piece of our plan to increase the flow of credit and expand liquidity. Our new Public-Private Investment Program will set up funds to provide a market for the legacy loans and securities that currently burden the financial system.
Would anyone be surprised if the private sector told the Feds to suck off? Who in the world would want to get into business with this government after witnessing their callous disregard for truth and honor. First, they don’t read before passing the single largest spending bill in US and world history. Then, when they are caught off guard by the contents of the bill they didn’t read before passing, they lash out at private citizens to the point of putting those citizen’s lives at risk.
Assuming the private sector doesn’t tell Obama-Biden-Geithner where to stick their plan, what will they be signing on to? More of the same to be sure:
The new Public-Private Investment Program will initially provide financing for $500 billion with the potential to expand up to $1 trillion over time, which is a substantial share of real-estate related assets originated before the recession that are now clogging our financial system.
We are doomed.
