Geithner ADMITS In Testimony ' TAXPAYER Exposed To LOSSES ' Of Financial Crisis

[Segami]

Run time: 05:31 https://www.youtube.com/watch?v=k8xddcBmwXI   Posted on YouTube: March 06, 2011 By YouTube Member: activistpost Views on YouTube: 39   Posted on DU: March 07, 2011 By DU Member: Segami Views on DU: 491

 

[slipslidingaway]

1. knr ...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4512328&mesg_id=4517368

YW and yes he is, I keep thinking that the taxpayers are now one of the shock absorbers.


Credit Markets Innovations and Their Implications

http://www.newyorkfed.org/newsevents/speeches/2007/gei070323.html

March 23, 2007

Timothy Geithner, President and Chief Executive Officer

At the 2007 Credit Markets Symposium hosted by the Federal Reserve Bank of Richmond, Charlotte, North Carolina

"...The latest wave of credit market innovations has elicited some concerns about their implications for the stability of the financial system, concerns similar to those associated with earlier periods of rapid change in financial markets. Will the most recent credit market innovations amplify credit cycles, contributing to "excessive" lending in times of relative stability, and then magnify the contraction in credit that follows? Will they introduce greater volatility in financial markets? Will they create greater risk of systemic financial crisis?

These concerns have been heightened in some quarters by the problems currently being experienced in the subprime mortgage sector. It will take some time before the full implications are understood and the full impact can be assessed. As of now, though, there are few signs that the disruptions in this one sector of the credit markets will have a lasting impact on credit markets as a whole...


...In general, there does not seem to be strong empirical support for the proposition that derivatives increase volatility in financial markets. Volatility is not higher where derivatives are most prevalent...

...The stronger these shock absorbers, the more resilient markets will be in the face of future shocks, and the more confident we can be that banks will be a source of strength and of liquidity to markets in periods of stress and that the financial system will contribute to improved economic performance over time.

Thank you."