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Saturday, April 11, 2009

Liquidate the Banks; Fire the Executives


On Tuesday, a congressional panel headed by ex-Harvard law professor Elizabeth Warren released a report on Treasury Secretary Timothy Geithner's handling of the Troubled Assets Relief Program (TARP). Warren was appointed to lead the five-member Congressional Oversight Panel (COP) in November by Senate majority leader Harry Reid.
From the opening paragraph on, the Warren report makes clear that Congress is frustrated with Geithner's so-called "Financial Rescue Plan" and doesn't have the foggiest idea of what he is trying to do. Here are the first few lines of "Assessing Treasury's Strategy: Six Months of TARP":

"With this report, the Congressional Oversight Panel examines Treasury’s current strategy and evaluates the progress it has achieved thus far. This report returns the Panel’s inquiry to a central question raised in its first report: What is Treasury’s strategy?"

Six months and $1 trillion later, and Congress still cannot figure out what Geithner is up to. It's a wonder the Treasury Secretary hasn't been fired already.

1 comment:

  1. Is depression here or not? not very clear. But if you look at the past history recessions and depressions come and go. (see for instance,
    http://www.recessioninfocenter.com
    Economies go through cycles and recession is part of the cycle. Too much government interference can backfire and it seems like that's what the governmetn is doing now

    ReplyDelete

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