From the mail bag.
Annoying animation after the jump.
The Safecracker
Once they find a correlation, they are about as likely to let go as a pitbull clamping down on a small child.
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.
WASHINGTON, Feb 10 (Reuters) – The following are excerpts from a speech U.S. Treasury Secretary Timothy Geithner will deliver on financial stability at 11 a.m. (1600 GMT).
“As President Obama said in his inaugural address, our economic strength is derived from ‘the doers, the makers of things.’
“The innovators who create and expand enterprises.
“The workers who provide life to companies and, with their earnings, support families and invest in their future… This is what drives economic growth.
“The financial system is central to this process, transforming the earnings and savings of American workers into the loans that finance a first home, a new car or a college education, the credit necessary to build a company around a new idea.
“Without credit, economies cannot grow, and right now, critical parts of our financial system are damaged.
……
“Instead of catalyzing recovery, the financial system is working against recovery, and that’s the dangerous dynamic we need to change.
“It is essential for every American to understand that the battle for economic recovery must be fought on two fronts. We have to both jump-start job creation and private investment, and we must get credit flowing again to businesses and families.
Tim “The Safecracker” Geithner is going to be demonstrating his deft touch for opening vaults this morning and we will take you there via liveblog.
As being well-prepared will help attenuate the degree to which you are blinded and blind-sided by bullshit rhetoric, you might be interested in reviewing this viewing guide from Baseline Scenario via Alea. Certainly, taking some Vitamin C and getting a tetanus shot before tuning in is a good idea.
