It’s “deeply unfair” that some financial institutions that got taxpayer-paid bailouts are emerging in better shape from the recession than millions of ordinary Americans.
Geithner also argued that President Barack Obama had no choice when confronted with a financial crisis.
“As the president has said, we had to do some very unpopular things,” Geithner said. “People looked at what had happened.”
“It’s not fair. It’s deeply unfair,” he said. “He (Obama) had to decide whether he was going to act to fix it or stand back … and that would have been calamitous for the American economy.”
But lets take a look at a bigger picture. Through the bailouts the government has not succeeded in fixing the Wall Street problem. The last time I checked Ron Paul’s bill H.R. 1207 to audit the Federal Reserve has gone nowhere. So how has the problem been fixed?
With secrecy on their side, the Federal Reserve is able to loan money to anyone, and those who are caught out of the loop are on a need to know basis. The following link explains why the “too big to fail” theory just doesn’t happen. http://www.washingtonsblog.com/2009/10/white-house-still-defending-myths-about.html
Simon Johnson and James Kwak write:
[There was a] point at which the government had to decide if it would defend the financial oligarchy from populist outrage, or whether it would reform the financial system that brought us the financial crisis and severe recession. We do not think it was an easy choice. But ultimately Obama and his advisers chose to bet on the bankers they knew. The result has been even larger banks and an even more concentrated financial sector.
Geithner finished the interview with this statement:
“What happened in our country should never happen again,” he said. “People were paid for taking enormous risks. It was a crazy way to run a financial system.” Geithner said, “It’s the government’s job … to do a better job of restraining that kind of risk-taking.”
Its a shame that the risky and wreckless economic tactics still persist. William Black points out:
Mr. Geithner, as President of the Federal Reserve Bank of New York since October 2003, was one of those senior regulators who failed to take any effective regulatory action to prevent the crisis, but instead covered up its depth.
As the Huffington Post points out, the Federal Reserve bailed out Bear Stearns with tens of billions of dollars, ultimately putting the American taxpayer’s wallets on the line. And all this came months before the $700 billion banker bailout. You know that guy who looks something like a troll, Tim Geithner, he was in the middle of it.
In the final analysis, the Fed’s secret back alley deals will only persist. Despite H.R. 1207, and the knowledge that a multitude of Americans have of the true actions and origins of the Federal Reserve, the secrecy and corruption will only continue. It seems that the bankers are the ones that are “too big to fail”.