naked capitalism

Mike says:

Competence is a minimum standard, folks. What does the candidate stand for? The MSM ducks that issue, choosing to characterize Geithner as a technocrat. That is incomplete and inaccurate

Hear, hear. Everything about Geithner (including, of course, his yeoman work over the weekend, along with Hank & Ben, to ram through the latest boondoggle: the Citigroup bailout) suggests an intervenor extraordinaire, an inflationist, a cozy buddy to Wall St.

The spigots are open and Geithner will do little to shut them. Being a competent technocrat, and all, he'll probably find a way to open them wider.

Watch your wallets.

River says:

Great catch Yves. I believe that Cris Wood’s take on how this mess will play out is as good a guess as has been put forward.

Long bonds, anyone?

Anonymous says:

I’m curious why you’re not impressed with Geithner?

john bougearel says:

Yves,

Peter Kovalski indicates C has another Achilles heel, emerging markets, that will be catching up with C in the coming months. I am of course not in the banking industry, so have no visibility on C's emerging mkt risks in the coming months.

Citigroup remains vulnerable to losses on loans and securities outside the U.S., said Peter Kovalski, a portfolio manager at Alpine Woods Capital Investors LLC in Purchase, New York, which oversees $8 billion and holds Citigroup shares. The government plan “gives them a little bit of breathing room, but longer term, things may deteriorate and losses increase,” said Kovalski. “The Achilles heel with Citi is their exposure to emerging markets and what’s going to happen when emerging markets turn down, as they’re doing now.”

http://www.bloomberg.com/apps/news?pid=20601103&sid=aoAIRJWrcnO4&refer=news

v says:

Love, jobs, 401k
Ppl consulting psychics about their homes, stocks & investments.
“When conditions are this volatile, consulting a psychic can be as good a strategy as any other.”

party like it's 1929 says:

Sweetheart Deals passing for “rescues”. There is little more than pure politics being played in all the major “rescues” this year. And those unconnected are left to die (LEH, Big Three still have to grovel).

As a nation we are in a state of intense denial over
1)The magnitude of the earthquake that hit Wall Street. Think 8.4 : Near total destruction with fires plus tsunamis. No major firm was unscathed, no building still stands.
2)The utter worthlessness of off and on-balance sheet assets which are being prevented from being marked or valuated, let alone sold via TARP because there are no bids
3)The degree of political collusion which has guided all Treasury and most Fed actions. A bailout for “our friends”. Nobody held accountable, nobody even being fingered as in all past crises. Defense being used is the old “the system is to blame, not individuals” and “well they all took so I did too”.
4)We are being led down the exact path that Japan took with regard to toxic assets held by banks: all non-performing assets were held with minimal transparency adn marked doen over 12 years with total government collusion
5)There is no engine of financial growth left for when good times return. With crippled Wall Street, the prospects are grim. Foregin competitors are salivating on the sidelines.
6)Princes, Communist strong men, and other totalitarians have rushed in with capital where angels fear to tread. Our financials are now controlled in good measure by these folks. Think they are going to favor Main Street USA?

Hehe

dearieme says:

“Taser inc. stock up 3.65 on the back of 10k unit order from L.A. police.” What a coincidence: the government has just announced a large purchase for England.