Blunt Questions For Crony Capitalist Tim Geithner

Robert Lenzner at Forbes would like to know about a few things.

B and G cc

It is amazing to me that the guys running the show at the Fed (New York and otherwise) and in “the canyons of Wall Street” as David Stockman puts it, just walk around these days like nothing happened in 2008. No crimes were committed. That Goldman Sachs was going down the tubes one quarter and then after the infusion of tax money had the most “profitable” quarter in their history, that’s totally cool.

That the top tier of the American banking system was recapitalized on the backs of the American citizenry is no big deal.

What do you really want anyway, justice? Or would you prefer we inflated your 401k balance? That’s right debt serf, justice is expensive and you don’t have access to the Fed’s printing presses. How about you just be quiet and enjoy the crumbs we throw you.

The canyon dwellers figure that a public that isn’t on top of things enough to understand the Federal Reserve and how deeply devious it is, certainly has no business coming after them. They are the true “masters of the universe,” only they don’t deal in millions like in the old Bonfire of the Vanities days, they deal in billions and even trillions. How can a public, of which a large majority lives from paycheck to paycheck possibly understand what the money shamans do? Even more importantly why should the shamans be subject to the justice of such an ignorant mass?

(From Forbes)

I have to admit that I have been looking forward to the opportunity of asking Mr. Geithner if he ever read the Citigroup C +0.92% annual report for 2006 or 2007, which included a balance sheet and notes to the balance sheet that divulged the gross amount of financial activity off-the balance sheet of well over $1 trillion. Such activity I was told at the time involved borrowing hundreds of billions of dollars short-term from sovereign funds abroad and then lending them out long-term in very shaky mortgage instruments.

It was this Achilles’ heel, in fact, which led me on January 8,2008 to recommend the shorting of Citigroup shares at $29 a share. The shares of Citigroup fell to 97 cents a share before recovering only a fraction of their former value.

Click here for the article.