Henry Blodget: Tim Geithner Is Screwing You Again
(Screenshot...video is below)
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You remember GMAC. Bored by the mundane world of vehicle financing, they plunged into mortgage originations only to get stomped. They've already received $12.5 billion via TARP since December 2008 (because TARP was designed to help auto loans, remember?...or was it the toxic muffler market?), and now Tim Geithner is preparing to offload another $5 billion to the strategically important entity.
Are you kidding me? We can't get 1 billion for updates to air-traffic control infrastructure that relies on 1950s technology, but we got $18 billion for GMAC.
That's $18 billion of borrowed bamboozle being shoveled down a rat hole.
Don't miss this one. Blodget offers an alternative GMAC rescue plan.
Video (4:52): Henry Blodget Talks GMAC, Tim Geithner & AIG Payouts At Par
Blodget's AIG-Geithner rail is the best part and begins at the 3-minute mark.
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Oct 28, 2009 at 5:18 PM
Reader Comments (10)
When I was in the Vietnam war I was proud of America. Our leadership in Washington needs to wake up and do what's right for America and Americans.
"Those legislators who are truly seeking to protect the public interest and to be worthy of re-election, should demand that legislation spell out, in plain English, that the entire capital structure of a TBTF institution be wiped out, and its holding company held responsible as a source of strength, before taxpayers are exposed to a single dollar of loss."
To which, Barry Ritholtz adds:
"If leadership won’t add such language, call your elected official and ask how much they actually receive when they agree to put on the kneepads."
http://www.ritholtz.com/blog/2009/10/congress-and-tbtf-%e2%80%93-bring-in-the-bomb-squad/
Good on the both of them. If our other favorite bank analyst, Chris Whalen, is gregarious and provocative, Rosner is just as smart and was even more prescient in sounding the early warning alarms.
http://www.hudson.org/files/documents/Feb.15%20CDO%20Event%20Transcript.pdf
By BEN FELLER, Associated Press Writer Ben Feller, Associated Press Writer – 1 hr 26 mins ago
DOVER AIR FORCE BASE, Del. – Standing in the pre-dawn darkness, President Barack Obama saw the real cost of the war in Afghanistan: The Americans who return in flag-covered cases while much of the nation sleeps in peace.
The dramatic image of a president on the tarmac was a portrait not witnessed in years. Former President George W. Bush spent lots of time with grieving military families but never went to Dover to meet the remains coming off the cargo plane. Obama did so with the weight of knowing he may soon send more troops off to war.
With…Photo op of Obama saluting the returning coffins of our heroes. I wonder if the AP would write the same fluff piece for a Republican like McCain. Bush just met with the families in private to show his respect, how creepy.
Our financial emperors have been going around naked for a very long time but most people see this as a profit opportunity instead of a call to action.
Let us hope that our collective inaction and rush to the moral bottom does not end in financial and social catastrophe.
And going beyond hope, let's all get ready to do something courageous and intelligent for our country and not only for ourselves and our immediate families ... before it's too late.
http://www.thetinyspark.com/
CHART OF THE DAY: Cash-For-Clunkers MASSIVELY Distorted GDP
If anyone mentions the just-released 3.5% U.S. third quarter GDP growth, just throw this chart in their face.
http://www.businessinsider.com/chart-of-the-day-motor-vehicle-output-2009-10?utm_source=Triggermail&utm_medium=email&utm_campaign=Clusterstock%20Chart%20of%20the%20Day%2C%20Thursday%2C%2010%2F29%2F09
http://www.businessinsider.com/henry-blodget-tim-geithner-dont-you-dare-bail-out-gmac-again-2009-10
Thanks for the Posner link, james...hadn't seen that.
Paul Craig Roberts
Tuesday, 27 October 2009 08:28
Information Clearing House
Evidence that the US is a failed state is piling up faster than I can record it.
One conclusive hallmark of a failed state is that the crooks are inside the government, using government to protect and to advance their private interests.
Another conclusive hallmark is rising income inequality as the insiders manipulate economic policy for their enrichment at the expense of everyone else.
(EDITED for length)
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Repeated from Black Swan...