BS Machine: Tim Geithner's Annual Op-Ed, In Which We Learn That It Is Time To Panic About US Banks

[stockholmer]

http://www.zerohedge.com/article/time-tim-geithners-annual-op-ed-which-we-learn-it-time-panic-about-americas-banking-sector

When just under a year ago, Tim Geithner penned "Welcome to the Recovery" http://www.nytimes.com/2010/08/03/opinion/03geithner.html he top ticked the zenith of the business cycle to the day if not the hour, with the economy finding itself in a straight line contraction ever since then, blissfully delayed by a 9 month QE2 detour. Now that the QE2 is no longer a factor, we are already seeing economists everywhere cut their Q2 GDP forecasts to sub 2%, an effective stall speed for the economy in real terms, and reducing their full year economic forecasts.

Which is why we were delighted to learn that today Geithner has just released his latest iteration of a top-ticking missive, this one titled inappropriately enough "Dodd-Frank Has Made Our Banks Stronger" http://www.morningstar.co.uk/uk/markets/newsfeeditem.aspx?id=153856465965998 which is supremely ironic because not only has Dodd-Frank not made anything stronger as it has not even been remotely implemented, but as Bank of America, Goldman and Citi's Q2 results have just confirmed, the US bank sector is now the weakest it has been in years. Thus, when accentuated with a Geithner adminition to not panic our only advice is to do precisely the opposite. Oh yes, it took precisely 25 days between Geithner's heartfelt appeal to America's idiot class last year and Bernanke's Jackson Hole appearance. We wonder if this year it will be shorter.

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http://www.morningstar.co.uk/uk/markets/newsfeeditem.aspx?id=153856465965998

Dodd-Frank Has Made Our Banks Stronger

By Tim Geithner

Two and a half years ago, with our country on the edge of a second Great Depression, we met with the president in the White House to discuss whether to move in those first months of his administration to legislate fundamental reform of the financial system -- or wait until we had put the crisis behind us.

The president made two key decisions. First, he chose to move forward, knowing that the forces of opposition to reform would grow stronger as the memory of the crisis receded. And second, he asked us to write draft legislation rather than propose broad principles. The president did not want the new rules to end up being written by those who brought us to the edge of catastrophic financial failure.


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too bad they WERE