Tim Geithner – fraudster

Last night, on Bill Moyers Journal, William Black said, quite bluntly, that Treasury Secretary Tim Geithner is committing fraud, with TARP 2.0 and TALF. It all started when Moyers asked him why GM CEO Rick Wagoner gets canned and not Bank of America CEO Kim Lewis or somebody like that. Black responded:

If we put honest people in, who didn't cause the problem, their first job would be to find the scope of the problem. And that would destroy the cover up. …

Geithner is charging, is covering up. Just like Paulson did before him. Geithner is publicly saying that it's going to take $2 trillion — a trillion is a thousand billion — $2 trillion taxpayer dollars to deal with this problem. But they're allowing all the banks to report that they're not only solvent, but fully capitalized. Both statements can't be true. It can't be that they need $2 trillion, because they have masses losses, and that they're fine.

These are all people who have failed. Paulson failed, Geithner failed. They were all promoted because they failed, not because...

Finally, someone “mainstream” in the economics world who will go beyond even Krugman and call a spade a spade.

Read the whole interview transcript or watch the video to see the details of Black’s charge.

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Inflation fear– TARP beneficiaries sell America short

The dollar has just hit a 25-year low spot. Why? Fears that Federal Reserve Chairman Ben Bernanke is not just stoking inflation, but actually “clipping” the dollar, with his buyback of Treasuries announced last week.

“What it introduces is the problem of the currency to the extent that the Fed is buying what isn’t desired by foreign holders,” said Bill Gross, co-chief investment officer of Pacific Investment Management Co., in an interview on Bloomberg Television on March 19. “The Fed can keep interest rates where they want to keep them, at least for a 6- to 12- to 18-month period of time, but it will have consequences down the road.”

Plus, that 1985 low point was a coordinated international strategy.

This ain’t.

And — chutzpah alert:

TARP beneficiaries Goldman Sachs and Citigroup are telling people to buy euros.

Brad DeLong has an interesting idea: Why doesn’t Bernanke buy undervalued private bonds instead?

Chutzpah watch: WaMu suing FDIC

Boy, the megabanks STILL “just don’t get it” just refuse to get it.

Washington Mutual is suing the Federal Deposit Insurance Corporation for a cool $13 billion it claims the agency caused it to lose in banking operations.

The FDIC turned down a number of WaMu claims allowances for lack of specificity.

To which, in the lawsuit, WaMu is, in essence, saying, “Trust us!”

But, there’s this tidbit further down the story, indicating WaMu must not follow news on a daily basis.

In the midst of outrage over AIG bonuses, etc., WaMu is seeking a jury trial.

Uhh, yeah, good luck with that.

Good luck with a judge this side of Nepal finding a jury that’s “untainted” by financial meltdown news.

Chutzpah alert – AIG sues government

As in its 80 percent shareholder, the government. It’s not over the bonuses, but over the IRS saying it got too creative with offshore tax shelters.

Shock me.