Geithner must go, says Henry Blodget at Business Insider

Here’s why

Geithner was directly responsible for the most appalling corporate bailout in U.S. history, in which tens of billions of taxpayer dollars were secretly funneled to some of the richest corporations in the world.

This is anti-democratic on the face of it. especially coming from a new administration that made a big deal about how they would be more transparent.

Geithner’s ongoing decision to save banks at any cost was predicated on the theory that this would keep the banks lending. This policy has failed: The banks have not continued to lend.

Instead, the banks hoard money or borrow from the Fed ultra-cheap then buy government bonds for a locked-in no-brainer return. The government has done nothing to stop this. They’ve made not even a peep of protest much less used the bully pulpit.

Geithner’s policy of “too big to fail” has created a banking system whose bets are guaranteed by the US taxpayer, and it has distorted lending and market forces across the entire economy

Who profits mightily from Geithner’s actions? The banks. Who loses? Us.

Geithner’s role in the AIG bailout, which the current administration bears no responsibility for, continues to destroy confidence in his current boss, President Barack Obama.

I disagree. Obama’s actions and decisions during this crisis continually and without fail favor and pamper the banks while the rest of us get hosed. Plus, Obama hired Geithner and so far has remained mute about Geithner’s despicable role in plundering AIG. Obama’s own action’s are what is destroying confidence in him.

Geithner’s consistent decision to put Wall Street first has helped fuel a populist rage that will make it very difficult for the government to do anything more to help the financial system

Again, Obama and the rest of the administration have done nothing to stop Geithner or reign in the banks and seem oblivious to the ever-increasing populist rage.

From the comments to the post.

I agree that Geithner’s smug arrogance is fueling populist rage.

I believe that the Geithner-AIG story is a plant. (It was broken by Bloomberg, that itself is odd).

The story is designed to deflect anger at the Goldman bonuses which will be awarded this month. The story creates a scapegoat (“lil Timmy Geithner”) who will be sacrificed to propitiate populist rage. That sacrifice will be cathartic to the angered tribes.

The true criminals (Goldman) will escape with their billions while the burned corpse of Geithner is dragged through the streets. It is a distraction and ritual designed to satisfy the blood lust.

Whoever has designed the Geithner sacrifice has studied old testament theology. Goldman will be strengthened because they have shown a cold blooded ability to sacrifice their lap dogs in the service of their strategy. The politicians cower in fear at their brutality.

If so, I doubt tossing Geithner to the wolves will satisfy them. More likely, they’ll want more fresh meat. Also, politicians mostly are members of the same elites who profit from the actions of Goldman and their ilk. They do not cower in fear of them, rather they are  members of the same club, and are currently siphoning huge amounts of money from us to them.

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