Geithner says TARP didn’t cost hundreds of billions because it’ll (mostly) all get paid back. Except if it doesn’t if the cheerily optimistic assumptions are wrong. He had mention of the Obama Administration gutting accounting rules so the banks could mark to fantasy not reality, and how that might impact the money being paid back.
In a genuinely bizarre statement, he says, and I quote “the U.S. financial system has been completely overhauled and is in a much stronger position today than before the crisis.” Yet any apparent strength in the financial sector is due to them being able to price their toxic slop at what they paid for it and not for what’s it’s actually worth. Thus, the supposed health is mostly illusory.
Apparently he must have forgotten about our soaring unemployment and foreclosure rates because he doesn’t mention them at all.
Readers are invited to peruse the rest of his Pollyanna perkiness.