Treasury official says future bailouts won’t be needed
FDIC will spread losses in future bailouts
Sigh.
US near default, Geithner warns
“Failure to increase the limit would be deeply irresponsible,’’ Geithner wrote, and added: “It is important to emphasize that changing the debt limit does not alter or increase the obligations we have as a nation; it simply permits the Treasury to fund those obligations Congress has already established’’ — under presidents and Congresses of both parties.
A failure to increase the limit in time would force the Treasury to default on legal obligations and payments to bondholders here and abroad “causing catastrophic damage to the economy,’’ Geithner said, threatening the dollar and stopping payments for a range of federal benefits, including military salaries, Social Security, and Medicare.
Related: Fed continues to back $600b Treasury bond-buying program
Fed not ready to slow bond-buying program
Fed’s task now is to watch and wait
Higher rates a plus, Bernanke says
Talk about threatening the dollar!
As long as he keeps that printing press rolling prices will keep going up!
Also see:
"Last March, the Fed completed the purchase of $1.25 trillion in mortgage-backed securities, and in November, it began buying $600 billion in Treasury bonds. Interest income from its investment portfolio has produced record profits for the Fed for two consecutive years. But over time, when economic conditions improve, the portfolio could become a risk."
Yeah, somehow the Fed made a profit from repurchasing crap. Amazing.
I need to stop flushing and start selling!!
Guarded praise for Citi bailout
Treasury Secretary Timothy Geithner told special inspector general for the Troubled Asset Relief Program Neil Barofsky, that creating measurements for systemic risk was impossible because firms would “migrate around’’ the criteria, according to report.
Geithner led the Federal Reserve Bank of New York in 2008 when regulators allowed Lehman Brothers Holdings to fail and then bailed out American International Group in the same week. “It depends too much on the state of the world at the time,’’ the report cited Geithner as saying. “You won’t be able to make a judgment about what’s systemic and what’s not until you know the nature of the shock’’ the economy is undergoing.
Then why are you guys in charge at all if you don;t know WTF you are doing?
Geithner said that “we may have to do exceptional things again’’ if the shock to the financial system is large enough, the report said....
Meaning the "bailouts" to Wall Street will NEVER END!
Citigroup paid back $20 billion of its bailout funds and the Treasury converted the remaining $25 billion into a 27 percent stake in the bank, which it began selling last year. It sold the last of its investment in December, realizing an overall gain for taxpayers of about $12 billion....
And if you believe that I have a bridge to sell you, dear readers.
Citigroup may report on Jan. 18 net income of $11.5 billion for 2010, according to analysts’ estimates. The bank posted combined losses of $29.3 billion in 2008 and 2009.
Related: Citigroup posts a disappointing profit of $1.31b
I'd be happy with it.
"Geithner reiterates unemployment concerns; Growth too weak to cut jobless rate, he says" by Simon Kennedy and Jana Randow, Bloomberg News / January 29, 2011
DAVOS, Switzerland — Treasury Secretary Timothy Geithner said yesterday that the US economic expansion is still too weak to slash unemployment or a budget deficit headed for $1.5 trillion.
“There’s much more confidence now that we’ve got a sustainable expansion,’’ Geithner told the World Economic Forum’s annual meeting here. “It’s not a boom. It’s not an expansion that’s going to offer a rapid decline in unemployment.’’
While the Dow Jones industrial average this week passed 12,000 in intraday trading for the first time since June 2008 and more data suggested the recovery is gathering momentum, the jobless rate remains above 9 percent. Such weak spots are tempering the optimism on display this week as 2,500 executives, economists, and lawmakers meet in the Swiss Alps.
“The good news is in the US we’re seeing renewed growth,’’ Joe Saddi, chairman of consulting firm Booz & Co., said. “There is still an unemployment situation and it remains to be seen if there is a credible strategy for dealing with the deficit.’’
Geithner, 49, is the first Treasury secretary to visit Davos in 11 years and the highest-ranking member of President Obama’s administration yet to attend the conference.
Translation: The U.S. economy is in SERIOUS TROUBLE!
In an hourlong interview with broadcaster Charlie Rose, he said that while the budget deficit is “unsustainable,’’ it would be a mistake to threaten the recovery by cutting the shortfall prematurely. He also said pressure on US state budgets is “diminishing, not intensifying’’ and that he’ll soon outline a plan for the future of US-owned mortgage companies.
Related:
"Growing deficits have states looking to curb labor unions’ power" by Steven Greenhouse, New York Times / January 4, 2011
NEW YORK — Faced with growing budget deficits and restive taxpayers, elected officials from Maine to Alabama, Ohio to Arizona, are pushing new legislation to limit the power of labor unions, particularly those representing government workers, in collective bargaining and politics.
State officials from both parties are wrestling with ways to curb the salaries and pensions of government employees, which typically make up a significant percentage of state budgets....
In some cases — mostly in states with Republican governors and Republican statehouse majorities — officials are seeking more far-reaching, structural changes that would weaken the bargaining power and political influence of unions, including private sector ones....
But it is not only Republicans who are seeking to rein in unions....
Many of the state officials pushing for union-related changes say they want to restore some balance, arguing unions have become too powerful, skewing political campaigns with their large war chests and throwing state budgets off kilter with their expensive pension plans.
But labor leaders view these efforts as political retaliation by Republicans upset unions recently spent more than $200 million to defeat Republican candidates.
“I see this as payback for the role we played in the 2010 elections,’’ said Gerald McEntee, president of the American Federation of State, County, and Municipal Employees, the main union of state employees.
In October, McEntee’s union spent more than $90 million on the campaign to help Democrats.
--more--"
"Public employees face wrath of strapped taxpayers; Union contracts criticized amid budget crisis" by Michael Powell, New York Times / January 2, 2011
FLEMINGTON, N.J. — Across the nation, a rising irritation with public employee unions is palpable as a wounded economy has blown gaping holes in state, city, and town budgets and revealed that some public pension funds dangle perilously close to bankruptcy. In California, New York, Michigan, and New Jersey, states where public unions wield much power and the culture historically tends to be prolabor, even longtime liberal political leaders have demanded concessions — wage freezes, benefit cuts, and tougher work rules.
It is an angry conversation. Union chiefs, who sometimes persuaded members to take pension sweeteners in lieu of raises, are loath to surrender ground. Taxpayers are split between those who want cuts and those who hope that rising tax receipts might bring easier choices.
And a growing cadre of political leaders and municipal finance experts argue that much of the edifice of municipal and state finance is jury-rigged and, without new revenue, perhaps unsustainable. Too many political leaders, they argue, acted too irresponsibly, failing to either raise taxes or cut spending.
A brutal reckoning awaits, they say.
All so BANKERS and "investors" can get paid!
These battles play out in many corners, but few are more passionate than in New Jersey....
Assemblyman Paul D. Moriarty, a liberal Democrat, served four years as mayor of Washington Township. As the bill for pension and health benefits for town employees soared, he struggled to explain this to constituents.
“We really should not receive benefits any better than the people we serve,’’ he says. “It leads to a lot of resentment against public employees.’’
All of which can sound logical, except that, as Moriarty also acknowledges, such thinking also “leads to a race to the bottom.’’ That is, as businesses cut private sector benefits, pressure grows on government to cut pay and benefits for its employees.
But Wall Street had its best year ever.
--more--"
Also see: Many states shun or delay major public works projects
States face big budget gaps, little chance of improvement
Sorry I didn't have the time (or will) to read those last two, readers; however, you get my point.
Back to the gibberish:
Turning abroad, Geithner said some emerging nations could soften their links to the dollar and expressed confidence the euro will be “held together.’’
Related: Geithner warns Beijing on currency
Yeah, it's all China's fault.
Asked if he will remain Treasury secretary in coming years, he said, “I’m tempted to say I hope not,’’ before retreating to his traditional stance that he will serve for as long as Obama wants.
Geithner met Thursday with chief executives of financial companies to discuss progress in implementing regulatory reforms. Attendees included JPMorgan Chase & Co.’s Jamie Dimon, Bank of America’s Brian Moynihan, Standard Chartered’s Peter Sands, and Barclays’ Robert Diamond. Geithner agreed with their request for more clarity on regulation, UniCredit SpA CEO Federico Ghizzoni told reporters after the session.
Geithner must appear at such events to maintain foreign demand for US securities as the budget gap swells, said William Browder, chief executive officer of London-based Hermitage Capital Management.
Translation: NO ONE WANTS TO BUY our WORTHLESS BONDS anymore, Americans!!
That is why the FED HAS to do it!
If Treasury secretaries “didn’t feel like coming to Davos before, they need to do so now to continue to sell their bonds,’’ said Browder.
The recovery in the world’s largest economy has picked up steam since the end of last year, with home sales, industrial production, and consumer spending rising.
If you repeat a lie often enough....
Data released yesterday will show gross domestic product probably expanded at a 3.5 percent annual pace in the fourth quarter, up from 2.6 percent in the previous three months, according to the median estimate of 85 forecasts in a Bloomberg News survey.
The improved economic outlook is prompting global investors to increasingly favor the United States, with 37 percent of respondents to this month’s Bloomberg Global Poll naming it one of their preferred places to invest, up from 23 percent in November. More than half described the US economy as improving, up from a third. Almost two-thirds predicted the Standard & Poor’s 500 index will rise over the next six months.
Yeah, unemployment is still increasing and foreclosures accelerating, but... sigh.
--source--"
See why I'm sick of business BS from the bankster's paper?
A failure to increase the limit in time would force the Treasury to default on legal obligations and payments to bondholders here and abroad “causing catastrophic damage to the economy,’’ Geithner said, threatening the dollar and stopping payments for a range of federal benefits, including military salaries, Social Security, and Medicare.
Related: Fed continues to back $600b Treasury bond-buying program
Fed not ready to slow bond-buying program
Fed’s task now is to watch and wait
Higher rates a plus, Bernanke says
Talk about threatening the dollar!
As long as he keeps that printing press rolling prices will keep going up!
Also see:
"Last March, the Fed completed the purchase of $1.25 trillion in mortgage-backed securities, and in November, it began buying $600 billion in Treasury bonds. Interest income from its investment portfolio has produced record profits for the Fed for two consecutive years. But over time, when economic conditions improve, the portfolio could become a risk."
Yeah, somehow the Fed made a profit from repurchasing crap. Amazing.
I need to stop flushing and start selling!!
Guarded praise for Citi bailout
Treasury Secretary Timothy Geithner told special inspector general for the Troubled Asset Relief Program Neil Barofsky, that creating measurements for systemic risk was impossible because firms would “migrate around’’ the criteria, according to report.
Geithner led the Federal Reserve Bank of New York in 2008 when regulators allowed Lehman Brothers Holdings to fail and then bailed out American International Group in the same week. “It depends too much on the state of the world at the time,’’ the report cited Geithner as saying. “You won’t be able to make a judgment about what’s systemic and what’s not until you know the nature of the shock’’ the economy is undergoing.
Then why are you guys in charge at all if you don;t know WTF you are doing?
Geithner said that “we may have to do exceptional things again’’ if the shock to the financial system is large enough, the report said....
Meaning the "bailouts" to Wall Street will NEVER END!
Citigroup paid back $20 billion of its bailout funds and the Treasury converted the remaining $25 billion into a 27 percent stake in the bank, which it began selling last year. It sold the last of its investment in December, realizing an overall gain for taxpayers of about $12 billion....
And if you believe that I have a bridge to sell you, dear readers.
Citigroup may report on Jan. 18 net income of $11.5 billion for 2010, according to analysts’ estimates. The bank posted combined losses of $29.3 billion in 2008 and 2009.
Related: Citigroup posts a disappointing profit of $1.31b
I'd be happy with it.
"Geithner reiterates unemployment concerns; Growth too weak to cut jobless rate, he says" by Simon Kennedy and Jana Randow, Bloomberg News / January 29, 2011
DAVOS, Switzerland — Treasury Secretary Timothy Geithner said yesterday that the US economic expansion is still too weak to slash unemployment or a budget deficit headed for $1.5 trillion.
“There’s much more confidence now that we’ve got a sustainable expansion,’’ Geithner told the World Economic Forum’s annual meeting here. “It’s not a boom. It’s not an expansion that’s going to offer a rapid decline in unemployment.’’
While the Dow Jones industrial average this week passed 12,000 in intraday trading for the first time since June 2008 and more data suggested the recovery is gathering momentum, the jobless rate remains above 9 percent. Such weak spots are tempering the optimism on display this week as 2,500 executives, economists, and lawmakers meet in the Swiss Alps.
“The good news is in the US we’re seeing renewed growth,’’ Joe Saddi, chairman of consulting firm Booz & Co., said. “There is still an unemployment situation and it remains to be seen if there is a credible strategy for dealing with the deficit.’’
Geithner, 49, is the first Treasury secretary to visit Davos in 11 years and the highest-ranking member of President Obama’s administration yet to attend the conference.
Translation: The U.S. economy is in SERIOUS TROUBLE!
In an hourlong interview with broadcaster Charlie Rose, he said that while the budget deficit is “unsustainable,’’ it would be a mistake to threaten the recovery by cutting the shortfall prematurely. He also said pressure on US state budgets is “diminishing, not intensifying’’ and that he’ll soon outline a plan for the future of US-owned mortgage companies.
Related:
"Growing deficits have states looking to curb labor unions’ power" by Steven Greenhouse, New York Times / January 4, 2011
NEW YORK — Faced with growing budget deficits and restive taxpayers, elected officials from Maine to Alabama, Ohio to Arizona, are pushing new legislation to limit the power of labor unions, particularly those representing government workers, in collective bargaining and politics.
State officials from both parties are wrestling with ways to curb the salaries and pensions of government employees, which typically make up a significant percentage of state budgets....
In some cases — mostly in states with Republican governors and Republican statehouse majorities — officials are seeking more far-reaching, structural changes that would weaken the bargaining power and political influence of unions, including private sector ones....
But it is not only Republicans who are seeking to rein in unions....
Many of the state officials pushing for union-related changes say they want to restore some balance, arguing unions have become too powerful, skewing political campaigns with their large war chests and throwing state budgets off kilter with their expensive pension plans.
But labor leaders view these efforts as political retaliation by Republicans upset unions recently spent more than $200 million to defeat Republican candidates.
“I see this as payback for the role we played in the 2010 elections,’’ said Gerald McEntee, president of the American Federation of State, County, and Municipal Employees, the main union of state employees.
In October, McEntee’s union spent more than $90 million on the campaign to help Democrats.
--more--"
"Public employees face wrath of strapped taxpayers; Union contracts criticized amid budget crisis" by Michael Powell, New York Times / January 2, 2011
FLEMINGTON, N.J. — Across the nation, a rising irritation with public employee unions is palpable as a wounded economy has blown gaping holes in state, city, and town budgets and revealed that some public pension funds dangle perilously close to bankruptcy. In California, New York, Michigan, and New Jersey, states where public unions wield much power and the culture historically tends to be prolabor, even longtime liberal political leaders have demanded concessions — wage freezes, benefit cuts, and tougher work rules.
It is an angry conversation. Union chiefs, who sometimes persuaded members to take pension sweeteners in lieu of raises, are loath to surrender ground. Taxpayers are split between those who want cuts and those who hope that rising tax receipts might bring easier choices.
And a growing cadre of political leaders and municipal finance experts argue that much of the edifice of municipal and state finance is jury-rigged and, without new revenue, perhaps unsustainable. Too many political leaders, they argue, acted too irresponsibly, failing to either raise taxes or cut spending.
A brutal reckoning awaits, they say.
All so BANKERS and "investors" can get paid!
These battles play out in many corners, but few are more passionate than in New Jersey....
Assemblyman Paul D. Moriarty, a liberal Democrat, served four years as mayor of Washington Township. As the bill for pension and health benefits for town employees soared, he struggled to explain this to constituents.
“We really should not receive benefits any better than the people we serve,’’ he says. “It leads to a lot of resentment against public employees.’’
All of which can sound logical, except that, as Moriarty also acknowledges, such thinking also “leads to a race to the bottom.’’ That is, as businesses cut private sector benefits, pressure grows on government to cut pay and benefits for its employees.
But Wall Street had its best year ever.
--more--"
Also see: Many states shun or delay major public works projects
States face big budget gaps, little chance of improvement
Sorry I didn't have the time (or will) to read those last two, readers; however, you get my point.
Back to the gibberish:
Turning abroad, Geithner said some emerging nations could soften their links to the dollar and expressed confidence the euro will be “held together.’’
Related: Geithner warns Beijing on currency
Yeah, it's all China's fault.
Asked if he will remain Treasury secretary in coming years, he said, “I’m tempted to say I hope not,’’ before retreating to his traditional stance that he will serve for as long as Obama wants.
Geithner met Thursday with chief executives of financial companies to discuss progress in implementing regulatory reforms. Attendees included JPMorgan Chase & Co.’s Jamie Dimon, Bank of America’s Brian Moynihan, Standard Chartered’s Peter Sands, and Barclays’ Robert Diamond. Geithner agreed with their request for more clarity on regulation, UniCredit SpA CEO Federico Ghizzoni told reporters after the session.
Geithner must appear at such events to maintain foreign demand for US securities as the budget gap swells, said William Browder, chief executive officer of London-based Hermitage Capital Management.
Translation: NO ONE WANTS TO BUY our WORTHLESS BONDS anymore, Americans!!
That is why the FED HAS to do it!
If Treasury secretaries “didn’t feel like coming to Davos before, they need to do so now to continue to sell their bonds,’’ said Browder.
The recovery in the world’s largest economy has picked up steam since the end of last year, with home sales, industrial production, and consumer spending rising.
If you repeat a lie often enough....
Data released yesterday will show gross domestic product probably expanded at a 3.5 percent annual pace in the fourth quarter, up from 2.6 percent in the previous three months, according to the median estimate of 85 forecasts in a Bloomberg News survey.
The improved economic outlook is prompting global investors to increasingly favor the United States, with 37 percent of respondents to this month’s Bloomberg Global Poll naming it one of their preferred places to invest, up from 23 percent in November. More than half described the US economy as improving, up from a third. Almost two-thirds predicted the Standard & Poor’s 500 index will rise over the next six months.
Yeah, unemployment is still increasing and foreclosures accelerating, but... sigh.
--source--"
See why I'm sick of business BS from the bankster's paper?
