Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
"I certainly do not recall Giethner leading the bail-out of GM and Chrysler. Seemed more like he was drug along kicking and screeming. "

That's pure fiction unless you know someone in the Administration who tells you otherwise.

"The terms on which WS "repaid" TARP and bought back options were about the minimum that would not be seen as outright gifts "

More fiction - if McCain had won they would have been allowed to cancel the warrants which they were demanding strongly.

"revenue to make those payments came largely from WS arbitrage of the difference between the Fed cost of funds and what they could get in the market. I.E. the public gave them free money for them to lend at interest. "

Wrong again. By the way, the discount window was not invented by the Obama administration.

"The whole TARP issue is only the tip of the iceberg of Fed and Treasury assistance to TBTFs, and this has been to the detriment of the "real economy", which has continued to wither."

Which is why we have just had the longest period of manufacturing growth in 20 years.

"Small banks didn't get TARP money, but mid sized regional banks, such as my bank, Bank of the Ozarks, did, at Treasury insistence, under Paulson. "

And that's not even false, it's Republican PR bullshit. The records are online - look it up.

Keep reading Yves Smith and keep believing RW propaganda and calling it "left".

by rootless2 on Tue May 10th, 2011 at 09:38:50 PM EST
[ Parent ]
Well, I am certainly not going to take instruction from you.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue May 10th, 2011 at 11:52:50 PM EST
[ Parent ]
I think we may have reached the end of the productive part of this thread, then.

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Wed May 11th, 2011 at 01:45:13 AM EST
[ Parent ]


"Life shrinks or expands in proportion to one's courage." - Ana´s Nin

by Crazy Horse on Wed May 11th, 2011 at 04:41:00 AM EST
[ Parent ]
Please consider a diary "setting the record straight"...

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Wed May 11th, 2011 at 01:54:57 AM EST
[ Parent ]
The argument appears to be, insofar as Ireland is considered, whether Geithner was a key actor in determining the outcome of the IMF/ECB/Irish negotiations, or whether he was the fall guy, someone the ECB could use as cover for a very regressive, bank bondholder driven, austerity policy directed at Ireland.

We have Morgan Kelly arguing he was a key actor, apparently based on an account from an IMF source with knowledge of the negotiations. Morgan Kelly is an economic historian, not an insider in either IMF or Irish Government circles, and so we have to make a judgement call on how reliable his source and his account is.  Based on his track record, and based on only partial denials coming out of Washington, I would tend to believe him on this occasion, mainly because the ECB have no need of a US scapegoat:  they are doing exactly what they think they should eb doing, and making no apologies for it.

You are free to differ, and seem to be arguing that Geithner is a much misunderstood and maligned guy, both by Morgan Kelly and by US progressives more generally.  That is an argument I am not qualified to get into, but I suspect the position people will adopt depends on their view of the Obama administrator's dealing with wall street more generally.

This is a topic which deserves a diary of its own, and does not deserve to be buried in a 250+ comment stream where only 3 or 4 people are still involved.  From an Irish point of view, if we are looking for support from the US administration, it is important that we understand the internal dynamics and politics at work within that administration.

So please Rootless2, give us a diary on what you consider to be Geithner's approach to dealing with the financial crisis as it has unfolded in the US and Europe, and how it might differ from the approach of the Germans and the ECB.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed May 11th, 2011 at 06:51:30 AM EST
[ Parent ]