When asked what would happen if his economic rescue plans fail, Treasury Secretary Timothy Geithner dodged the question. Basically, we’re going all in. We all better hope it works.
– Geithner – No Plan B (The Lonely Conservative)
“It just requires will. It’s not about ability.”
Say what? Then there’s this video. Again, hat tip to The Lonely Conservative.
First of all, I love the bewildered expression on Geithner’s face when Bachmann questions him about where in the Constitution they are granted the rights to be doing.. well.. what they’re doing. It’s like he can’t even comprehend her words.
And when she moves on to Bernanke…
Michele Bachmann: “Why would the American people be disadvantaged in knowing this information?”
Bernanke: “They would not be disadvantaged necessarily; well, they would in the following sense: that, um, the concern is, uh, if, if banks were revealed to be b-borrowing, and others were not, they might– the inference might be drawn that they were in weaker condition than they might in fact be. There’s a problem with what’s called stigma. So that if- if banks are perceived as being weaker, if they have to come to the Fed, then others may not wish to deal with them, and they would therefore not come to the Fed. In fact, that was a problem that we had at the beginning of this episode: that no one wanted to come borrow even though it was clear that the banking system needed to get liquidity from us. So we have tried to make sure that their information is protected so that they will in fact come, and take the liquidity they need to help stabilize the banking system.”
Stigma. I looked it up. “n. a mark of disgrace or infamy; a stain or reproach, as on one’s reputation.” I don’t care if they “appear” to be in weaker condition; if they are in weaker condition, we should know! The idea of competition within the systems and allowing the people to see what they are dealing with, and choose between them is the idea of competition. Falsely leveling the playing field is killing capitalism. The fact that the banks are coming to the Fed is the first place is ridiculous, because the Fed doesn’t even base its money on anything! It’s all fiat money!
Ahem. I need to go to work.