Breathless from his presentation, the Safecracker faces the press in what was supposed to be a puff piece but has become something else entirely.
How could he explain the market's reaction? The hint that his "neck is on the line"?
Well, it's complicated, you see. Since we don't plan to "overpay" for assets, we are going to try to get private firms to overpay for them, which we will subsidize.
The earphone crackles again, "Down ten point one... ten point two..."
Are the banks corrupt and broken?
Sorta. Not really.
"...ten point four... ten point four four..."
It doesn't sound like you even have a plan figured out yet. Do you?
Steve, we are being very careful. Very cautious. We are going to consult widely. We are going to be open to suggestions. There are lots of ideas out there. No.
How about an example of how this will work?
One of the most acute challenges is the absence of the availability of capital.
No, I'm not kidding. He said that.
We will put together a carefully designed an entirely fictitious valuation for these assets.
Posted by guest , Feb 10, 2009 12:05PM
Geithner should take the Dick Cheney way out of the tough questions to come: Just reply, "So what?"
Posted by guest , Feb 10, 2009 12:06PM
The right plan we need now:
1) get Larry Kudlow back on his coke habit like the days he was at bear stearns
2) give charlie gasparino his old job back following celebrity gossip at a rag newspaper
3) all Erin burnett 24/7
SOLVED
Posted by guest , Feb 10, 2009 12:06PM
This isn't really hard people.
There is an additional $1.5T of Fed/Treasury support coming to the market.
And $800B of "economic stimulus."
The trade is easy. Get long TIPs and any inflatable asset that has been killed.
Get short Treasuries.
We're going to inflate our way out of this, boys.
Posted by guest , Feb 10, 2009 12:06PM
"Why yes, your neck is on the line."-King Louis XVI of France
Posted by guest , Feb 10, 2009 12:07PM
I like the way #3 thinks.
~Fake Michael Milken
Posted by guest , Feb 10, 2009 12:13PM
tiiiiiiiny bubbles sing it with me
Don Ho
Posted by guest , Feb 10, 2009 12:13PM
What would Gaspesto do?
Posted by guest , Feb 10, 2009 12:17PM
too too, didn't do.
Posted by guest , Feb 10, 2009 12:17PM
@3
Inflation doesn't work when you are in a liquidity trap because the velocity of money declines dramatically.
The solution is start a new tv gameshow called "CDO's Squared". "Joe the Plumber" types will be paid to hunt and kill overpaid bankers in the most creative ways possible. Cash awards will be paid to these individuals. This will put liquidity in the system and also allow a national catharsis. Problem solved.
Posted by guest , Feb 10, 2009 12:18PM
@7 it would probably involve ovens
Posted by guest , Feb 10, 2009 12:20PM
ok, Einsteins would you want to inspect the banks prior to setting the framework or after....
Albert
Posted by guest , Feb 10, 2009 12:21PM
Does anyone else theink he looks like the KEEBLER ELF
Posted by guest , Feb 10, 2009 12:21PM
Does anyone else theink he looks like the KEEBLER ELF
Posted by guest , Feb 10, 2009 12:23PM
Now, @10, let's not get all "Final Solution" and such.
Posted by guest , Feb 10, 2009 12:24PM
Isn't solvency a more pressing issue than liquidity. I quite like @3's plan.
Posted by guest , Feb 10, 2009 12:28PM
12 Let me weigh in on this one. The general opinion among Wall Street gay boys (yes, we discuss these things) is that he's attractive. Good face, build, haircut, well dressed. Obviously the straight boys are in disagreement. Ladies, your take? GAnalYst
Posted by guest , Feb 10, 2009 12:29PM
he looks like the KEEBLER ELF
Posted by guest , Feb 10, 2009 12:30PM
Am I an idiot?
Posted by Equity Private , Feb 10, 2009 12:31PM
The desperation required to contemplate physical contact (or proximity) is of such a level that it defies linear classification.
Posted by guest , Feb 10, 2009 12:31PM
#16
He doesn't have a personality - I prefer Paulson actually. He had nice hands and you can make fun of him because he was so crazy.
Posted by guest , Feb 10, 2009 12:32PM
If a tree falls in a forest and no one is around to hear it, does it make a sound?
Posted by guest , Feb 10, 2009 12:34PM
If a female basis trader openly bitches in an empty trading room, is she still right?
Posted by guest , Feb 10, 2009 12:34PM
Summers set him up to be the fall guy. He's got 2 years max.
Posted by guest , Feb 10, 2009 12:34PM
Gaspacino would conduct a meeting in the sauna at Equinox to discuss this matter at length and then snap Dylan Fatigans ass with a towel.
Posted by guest , Feb 10, 2009 12:37PM
KEEBLER ELF
Posted by guest , Feb 10, 2009 12:37PM
How about that answer he gave when what his name asked him if he was from the Credit Bubble Insider Club.
"I've never had a real job in my life, except working at King Burger in college", I paraphrase.
Posted by guest , Feb 10, 2009 12:38PM
I can't wait for members of the Obama administration to start responding to the press with "asked and answered", "I believe we've covered that, let's move on", "I have a statement to make. No questions, no follow-up".
Posted by guest , Feb 10, 2009 12:39PM
I give Geithner big props for one thing - he didn't do the vacuous fawning interview with Maria.
I could not have taken that cackle.
It's a shame he lacked any real details on the plan but Brian Williams and Liesman did a decent job - no hostility and not terribly soft ball questions.
Of course CNBC will likely not get the next interview after they let the Power Lunch crowd trash him immediately after. Who produces that show?
Posted by guest , Feb 10, 2009 12:40PM
@21 - If you're a douche and no one is around to see you, are you still a douche?
Posted by guest , Feb 10, 2009 12:41PM
I work for the largest clearing house in the US.
We haev 2000 broker dealers clearing thru us. (use our clearing platform).
Does anyone have a guess on how many brokers have gone under water in the past 3 months. ( I am seeing Keycorp BD going under today and they are our cleints)
$$$$TSC$$$
Posted by guest , Feb 10, 2009 12:41PM
Guest#9 - great job. The markets reralyy seem to trust the new adminsitrations ability to get us out of the mess.
Down 300 points and counting... maybe one of you has a real solution before we go to ZERO!
Posted by guest , Feb 10, 2009 12:42PM
Listen to Geithner is sort of a relief from having to listen to the intricate whines and stuttering from Paulson. Not that they are saying anything different.
Posted by guest , Feb 10, 2009 12:42PM
@23 I was thinking the exact same thing a few days ago. Summers probably treats Geithner like a little girl.
Posted by guest , Feb 10, 2009 12:43PM
I just found an old black and white interview with Geithner, I think it says alot about the current policy plan:
http://www.youtube.com/watch?v=3MaJy7LH5js&feature=related
Posted by guest , Feb 10, 2009 12:43PM
@29 depends on how big a douche ie gaspo, i say yes.
Posted by guest , Feb 10, 2009 12:45PM
I couldn't be more scared right now even if I was cornered in a dark alley by a rabid Gasparini.
Posted by guest , Feb 10, 2009 12:47PM
Their plan is to value toxic assets using mark-to-madoff
Posted by guest , Feb 10, 2009 12:48PM
"One of the most acute challenges is the absence of the availability of capital."
Translation: We're broke.
Cap tip, EP. The real-time breakdown of this silliness has been top shelf.
Posted by guest , Feb 10, 2009 12:50PM
lets try to answer 30..
i WAG 10% = 200 BDs under water
Posted by BottomFellOut , Feb 10, 2009 12:51PM
How is Ben buying from Tim going to solve the problem?
Posted by guest , Feb 10, 2009 12:52PM
@3: Agree in general. My concern with going long TIPS would be once inflation takes off the government will find a way to adjust CPI again to keep inflation out of the CPI, and thus out of TIPS. "Hedonic" adjustments and all that, you know. But going long TIPS and short treasuries as a short-term pairs trade does seem like free money.
Posted by guest , Feb 10, 2009 12:52PM
Gasbagool keeps scaring the bejeezus out of me too when I watch him on CNBC, but gotta say that his "WALL STREET WILL PAY" musings that were posted on Daily Beast last night were pretty damm good. Loved the references to public anal exams and lynchings that are supposed to go down in Washington before congress tomorrow. Good chance he will shoot his load tomorrow while reporting on this and could drop an F-Bomb or two, yessssss.....this could be the day
Posted by guest , Feb 10, 2009 12:54PM
This is all part of their scam - they don't want to ask congress to approve stealing money from taxpayers after they already got billions so they're going to claim "private companies" will buy those worthless assets but the government is going to provide a "guarantee" for them - that means that the government, which is really taxpayers, will be responsible for losses.
Posted by guest , Feb 10, 2009 12:55PM
@38- exactly - there is virtually no equity left supporting certain assets in the U.S. - in the roller coaster of capitalism we are puking on the way down.
Posted by BottomFellOut , Feb 10, 2009 12:55PM
How is Ben buying from Tim going to solve the problem except that no one knows how much debt it racks up?
Posted by guest , Feb 10, 2009 12:58PM
What are you talking about? This selloff was predicted on Friday. Since Tim cancelled yesterday's announcement, the selloff moved to today. You are such kiddies.
Posted by guest , Feb 10, 2009 12:59PM
@30, Regarding B/Ds going under water - please clarify - going out of business? Or just running afoul of capital requirements etc.? Please elaborate.....
Posted by PatrickBateman , Feb 10, 2009 12:59PM
@ 30
I bet you've seen a 2.5% blowup rate among BD's. So...50 brokers going under for the past 3 months?? But that, of course, is bottom of the barrel. Probably research shops that have 2 guys on a desk.
Posted by guest , Feb 10, 2009 1:03PM
Wall Street seems to have had the ball tossed back into its court. Maybe free market capitalism needs to come back, on steroids, and get the job done and stop worrying about being saved. The message seems to have been, "save yourselves".
Posted by guest , Feb 10, 2009 1:04PM
If #46 would wear a dress, he'd easily get hired at SAC. If "he" is a he, that is.
Posted by guest , Feb 10, 2009 1:07PM
hey @50 - ask Gasparino about men in dresses and he/she's. He seems to know his way around a tranny or two
Posted by guest , Feb 10, 2009 1:12PM
Of course the point of any "plan" is to obfuscate things enough so that the sheeple don't revolt. The losses are there, someone has to take them. The sheeple will pay, Geithner's job is to figure out a way to make them pay without them realizing what's going on.
Posted by guest , Feb 10, 2009 1:16PM
Headline of the Day - IBD
"Geithner's Plan Sends Stocks Sinking"
Posted by guest , Feb 10, 2009 1:18PM
@53
But that was predicted on Friday. Weren't you paying attention?
The little saying, buy on the rumor, sell on the news.
Such babies here.
Posted by guest , Feb 10, 2009 1:20PM
http://tinyurl.com/bqbv5x
Will Geithner's financial rescue plan work?
Yes
No
Undecided
Posted by guest , Feb 10, 2009 1:28PM
@12 Geithner is Butthead, where's Beavis?
Posted by guest , Feb 10, 2009 1:29PM
Banks wanted a plan that would have the government buy the toxic assets at book value and then service them / take losses over the long term.
This can't happen, as it is politically untenable; the public hates the bank bailout, and it would require more funds from Congress, and Obama wants to get his stimilus package done first.
Geithner/Obama care about the end result (increased lending to Main Street), not the middle. Some bank shareholders are going to get wiped out as bad bank buys the toxic asset at something closer to fair value, banks have to raise more capital (from the govt), and the govt basically takes over the co. It could have been worse for banks - Axelrod and Krugman wanted to take over the whole system.
Posted by Anal_yst , Feb 10, 2009 1:34PM
SKF to the moon!
Posted by guest , Feb 10, 2009 1:39PM
Gotta hand it to Barry O.
He is the new Mr. Teflon.
"Market went down? Must have been something that Timmay said."
Posted by guest , Feb 10, 2009 1:48PM
@30
What do you mean by going under?
Posted by guest , Feb 10, 2009 1:50PM
59 See 57 - it went down for a reason, not cause O is the pres.
Posted by guest , Feb 10, 2009 1:51PM
Change We Can Believe In
Posted by guest , Feb 10, 2009 1:59PM
@61
Did the market go down because of Barry - no. Did #59 say that - no.
Did the market go down for a reason - yeah, as opposed to?
Would you ever admit it if you made a mistake? I'm thinking no.
Posted by guest , Feb 10, 2009 2:03PM
@63 John? is that you go drink a bud and sit in one of your 5-7 houses...
Posted by KevinB , Feb 10, 2009 2:22PM
too sham, didn't wow
Posted by guest , Feb 10, 2009 2:24PM
I'm moving to Kandahar.
Posted by guest , Feb 10, 2009 2:46PM
There’s still a lack of clarity,” said Dan McMahon, director of equity trading at Raymond James Financial Inc. in St. Petersburg, Florida. “These are smart people and they’re supposed to have it figured out. We’ve been waiting all week and then he said nothing.”
Could he be talking about Obama's people? Better ideas could be had from this blog!
Posted by guest , Feb 10, 2009 2:53PM
At least paulson had that wonky pinky to distingush him.
Geithner just seems really vanilla. Very missionary - no outside the box thinking.
Posted by guest , Feb 10, 2009 2:53PM
At least paulson had that wonky pinky to distingush him.
Geithner just seems really vanilla. Very missionary - no outside the box thinking.
Posted by guest , Feb 10, 2009 3:03PM
@37 They are already doing that. Its called Social Security.
Posted by guest , Feb 10, 2009 3:12PM
“stress test”
Meaning -- run disaster scenario cases in combination
Posted by guest , Feb 10, 2009 4:23PM
@all too up, didn't Shit's Creek
Posted by guest , Feb 10, 2009 5:01PM
@37 - laughed so hard my Bushmills came out my nose!!!
Posted by guest , Feb 11, 2009 12:50AM
Obama keeps using the word depression in every speech he makes about the economy. Must be his positive attitude.
The man is smart but there is no way he can over come these bad odds.
Obama has been bushwacked by the past administration. And will be a one term president like Jimmy.
I cant wait and see how old he will look after 4 years in this pressure cooker.