Geithner: You Know, Pissing Away $200K Per Job Is a Great Idea

I've got an idea. Let's just cut a check to the millions out of work thanks to Obama and this idiot's masterful stewardship of the economy and call it a day.

Believe it or not, that wasn't the dumbest video clip you'll see today. This is.



In an amazing coincidence, that tool just so happens to be a very wealthy Obama donor.

"When You Open That Refrigerator, The Light Doesn't Go On"

Got to love Rep Allen West (R-FL) for telling it like it is. Apparently he isn't too impressed with Timmy "Turbo Tax" Geithner's performance or grasp of reality for that matter.

Geithner Admits: We Have No Plan

So nice to see Little Timmy and his boss are prepared.

Treasury Secretary Timothy Geithner said Monday there is no backup plan if Congress does not raise the debt ceiling, but expressed optimism that talks were moving towards a deal.

"Our plan has been — and it's the only plan available — is for Congress to act," he said Monday on CNBC. "Their plan and our plan is for Congress to raise the debt limit."

So no Plan B, other than some impromptu temper tantrums.

Ah, the best and brightest.

Meanwhile, when the adults offer an actual plan it's immediately rejected and demagogued.

Wild Coincidence: Fed Begins Printing Currency Bearing Timothy Geithner's Signature, Ends Up With $100B in Monopoly Money

But unlike the real worthless money the fed has been printing lately, these bills will be quarantined.

A printing problem with the new high-tech $100 bills has forced government printers to shut down production - and to quarantine more than one billion of the notes.

The flawed notes represent more than ten per cent of the U.S. currency on the entire planet.

They are being stored in giant vaults at Fort Worth in Texas and in Washington, DC, as the Federal Reserve desperately tries to resolve the problem.

Meanwhile printers have begun reprinting the old $100 notes - without the high-tech security features and still bearing the signature of George W Bush's treasury secretary, Hank Paulson - in order to prevent a cash flow crisis.

With the holiday shopping season in full swing, authorities are scrambling to do everything they can to keep U.S. cash flowing.

'There is something drastically wrong here,' one source told CNBC. 'The frustration level is off the charts.'

The new high-tech bills were initially scheduled for release in February of 2011. They were due to be the first in circulation that bore the signature of President Obama's treasury secretary, Timothy Geithner.

Cross-posted.

Fed To Geithner: Go Pound Sand

Aww, poor Timmy the tax cheat.

The Federal Reserve Board has rejected a request by U.S. Treasury Secretary Timothy Geithner for a public review of the central bank’s structure and governance, three people familiar with the matter said.

The Obama administration proposed on June 17 a financial- regulatory overhaul including a “comprehensive review” of the Fed’s “ability to accomplish its existing and proposed functions” and the role of its regional banks. The Fed was to lead the study and enlist the Treasury and “a wide range of external experts.”

Some top central bank officials, after agreeing to the review, saw a potential threat to Fed independence after the Treasury released the proposal, two of the people said. The Obama plan said the Treasury would consider recommendations from the review and “propose any changes to the Fed’s governance and structure.”

“It is not obvious at all why that is a Treasury responsibility or even appropriate why the Treasury would undertake that kind of study,” said Robert Eisenbeis, chief monetary economist at Cumberland Advisors Inc. in Vineland, New Jersey, and a former Atlanta Fed research director. “The Fed was created by Congress and it is not part of the executive branch.”

The Treasury has no business sticking their nose in the Fed's business. And the executive branch needs to mind their own business and stay away from monetary policy and the Fed. I would be just as adamant if the shoe were on the other foot and the Fed was trying to tell the Treasury what to do.

Believe me, folks, the last thing you want is for the politicians to be able to directly influence monetary policy, regardless of which party is in charge.

Friday News Dump: Federal Deficit Hits $1.38 Trillion

The good news? Well, there isn't any. The bad news? We still have another month to go to jack it up even further. But don't worry, ObamaCare will help us save money!

The federal deficit surged higher into record territory in August, hitting $1.38 trillion with one month left in the budget year.

The Treasury Department said Friday that last month's deficit was $111.4 billion, below the $152 billion that economists expected. Still, the imbalance added to a flood of red ink already accumulated through a severe recession and massive spending needed to stabilize the banking system.

The soaring deficits have raised worries about the willingness of foreigners to keep purchasing Treasury debt. The Chinese, now the largest foreign owners of U.S. Treasury securities, have expressed concerns about runaway deficits. Treasury Secretary Timothy Geithner and other administration officials have sought to address those concerns by insisting that once the current downturn is over and the financial system is stabilized, the administration will move forcefully to get the deficits under control.

No, the byline doesn't read AP Comedy Writer.

Since the number was less than expected, I'm sure Obama will trot someone out to say he saved us $40.6 billion last month.

Here We Go: Minority Broadcasters Seek Bailout

When you can't compete in business, you usually go belly-up. But when you're an arm of the Democrat Party you look to Lord Obama for a bailout.

It's bad enough we're funding the far left NPR.

A group of minority broadcasters asked Treasury Secretary Timothy Geithner Monday for financial assistance akin to the aid that has been extended to the financial and auto industries.

"Minority-owned broadcasters are close to becoming an extinct species," the letter said. "Even in better economic times, minority broadcasters have historically had difficulties accessing the capital markets."

The broadcasters told Mr. Geithner they can bounce back if they are given some temporary assistance while the credit markets are slow. "Unlike the auto business, broadcasting has been healthy for many years," their letter said.

The broadcasters appeal follows a proposal sent in May to Mr. Geithner by a group of influential House members asking for a minority broadcaster support program, bridge funding, or government-backed loans.

The House letter was signed by House Majority Whip James Clyburn (D., S.C.) and a group of key committee chairmen, including Financial Services Committee Chairman Barney Frank (D., Mass.) Ways and Means Committee Chairman Charles Rangel (D., N.Y.) and Oversight Committee Chairman Edolphus Towns, (D., N.Y.).

That list should tell more than enough that this is a terrible idea. Which means they'll probably be swimming in taxpayer dough before long.

Insurance Companies Lining Up for Bailouts

Now tax cheat Tim Geithner and Barack Obama are moving in to take over the insurance industry.

Prudential Financial Inc., Hartford Financial Services Group Inc. and Allstate Corp. are among six insurers approved by the U.S. government for bailout funds after investment declines eroded capital across the industry.

Hartford won preliminary approval for $3.4 billion from the Treasury Department’s capital purchase program, the Connecticut- based insurer said today in a statement. A person familiar with the matter said five other carriers won preliminary approval, including Lincoln National Corp., Principal Financial Group Inc. and Ameriprise Financial Inc.

Life insurers applied for government bailouts last year as the recession pushed down the value of corporate debt and mortgage investments held to back policies. Ratings downgrades and stock declines across the industry made it harder for insurers to raise money from private investors.

The Treasury funds “would further fortify our capital resources and provide us with additional financial flexibility during one of the most volatile market climates in our nation’s history,” Ramani Ayer, Hartford’s chief executive officer, said in the statement.

It's like that scene in It's a Wonderful Life where Potter is buying up all the businesses in town but the Bailey Building and Loan. Except for the one big difference: Potter did it with his own money.

It's a socialist's dream out there.

A Blind Hog and a Turnip

An old boss of mine used to talk about how even a blind hog could find a turnip once in awhile. I think this is an apt comparison to the latest coming out of the Treasury. I think they finally got something right:

The vast majority of complex and opaque over-the-counter derivatives must be traded on centralized clearinghouses, the Treasury Department recommended on Wednesday as part of its regulatory reform effort for exotic financial products.

"As part of our comprehensive reform effort, we are laying out a framework for oversight for the derivatives markets," Treasury Secretary Timothy Geithner said.

I've pounded Geithner for months but on this I think he's correct. Derivatives create an layer of risk and complication to the market that is very difficult for the average investor to understand or price into their investment decisions.

The Treasury, the Securities and Exchange Commission and the Commodity Futures Trading Commission proposed having standardized credit default swaps and most derivatives traded through clearinghouses. The government regulators made a host of other recommendations, however legislation would need to be crafted by Congress for the Treasury proposal to become a reality.

Traders could also be required to keep capital in reserves to cover losses. Specifically, the proposal also calls for derivatives dealers to maintain conservative capital standards, tougher risk controls and proposes new business conduct guidelines.

The parts I like are the trading desk, which will give transparency to the pricing of these securities and the requirement to keep capital in reserve to cover losses. Both of those would have gone a long way to preventing the melt down we saw happen last fall.

I'll hammer Geithner will glee every time he screws up, and I still think he's a clown, but this time he got it right.

Surprise! Michelle 'Guns' Obama Joins People 'Most Beautiful' List

As they say, beauty is in the eye of the beholder and apparently these judges are blind.

Michelle Obama, who has achieved celebrity status and has wowed the world as a fashion icon, made the list for the first time.
...
Also included in a "Barack's Beauties" section were White House chief of staff Rahm Emanuel, Treasury Secretary Timothy Geithner and others.

They truly are the beautiful people.

Even the White House chef made the list.

Led by first lady Michelle Obama, with an assist from her guns, a group of Washington power players made up People's list of "Barack's Beauties." She was joined by White House Social Secretary Desiree Rogers, Chief of Staff Rahm Emanuel, Treasury Secretary Timothy Geithner and White House Chef Sam Kass.

Somehow Carrie Prejean didn't make the list. Sarah Palin was overlooked but her impersonator is on the list and, most egregiously, one of our favorite babes isn't mentioned in any news stories, rendering this list meaningless.

A Really Bad Idea: The Hollywood Bailout

If Barack Obama wants to continue down his already rocky path, then he should just go ahead and give a $246 million bailout to his pals in Hollywood. Let's see how well that goes over.

Senate Republicans yesterday stripped a special $246 million tax break for Hollywood producers from President Obama's stimulus package.

"This isn't stimulus. This is a gift," said Sen. Tom Coburn (R-Okla.), who wrote the amendment to strike out the giveaway for some of the Democrats' most generous political supporters.

"It's not going to stimulate the economy at all," he said. "What it's going to do is line the pockets of very wealthy individuals already not experiencing the downside of the economy."

The 52-45 vote was largely along party lines, with nearly every Republican voting to remove the Hollywood tax break, joined by 13 Democrats and independent Connecticut Sen. Joe Lieberman.

Under the measure, Hollywood moguls would have been allowed to write off half the production and filming costs of big-budget films and TV shows.

Backed by Walt Disney and the Motion Picture Association of America, the provision amounted to an estimated $246 million tax break over 11 years.

The entertainment industry gave nearly $20 million in campaign contributions to Democrats during the 2008 election cycle, according to OpenSecrets.org.

So a bailout of $246 million over 11 years works out to a tidy $22.36 million annually, a tidy profit on their $20 million investment in Democrats for 2008, and I suspect this does not count individual contributions to Obama.

If the Democrats don't realize the contempt the average American has for the Hollywood elite, by all means go ahead and give them millions of our tax dollars and wait for the reaction.

Which brings to mind Obama's plan to cap the salaries of executives whose companies get government bailout money.

The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of bailout money, according to people familiar with the plan.

Executives would also be prohibited from receiving any bonuses above their base pay, except for normal stock dividends.

President Obama and Treasury Secretary Timothy F. Geithner plan to announce the executive compensation plan on Wednesday morning at the White House.

Is there anyone alive who believes Obama would impose a cap on salaries for Hollywood executives who so generously lavished money upon him?

Stop the Presses: Dennis Kucinich Is Making Sense

It's not often I find myself in agreement with kooky Congressman Dennis Kucinich, but he's dead right in this case.

Two members of the House of Representatives are demanding that the Mets scrap their $400-million naming-rights deal with financially troubled Citigroup because of the bank's receipt of federal bailout money.

Reps. Dennis Kucinich (D-Ohio) and Ted Poe (R-Texas) sent a letter to Treasury Secretary Timothy Geithner requesting he "dissolve" the contract with the Mets to name their stadium Citi Field. The Mets' home opener there is set for April 13.

In an interview yesterday, Kucinich said the financial behemoth is in no position to lay out cash to have its name on the Queens stadium. "It's just totally unacceptable that Citigroup should be able to spend $400 million in naming rights when they're the recipients of a massive federal bailout," he said.

Kucinich and Poe wrote that Citigroup's financial footing "has changed drastically" since the naming rights deal was struck in 2006. The agreement calls for Citigroup to pay $400 million over 20 years for the naming rights.

The Mets "are fully committed to our contract with Citigroup," said Jay Horowitz, the team's spokesman.

This will be a never-ending PR disaster for the Mets.