This morning Bloomberg reported the email trail now confirms that the New York Fed pressured AIG to pay Goldman Sachs and other banks 100 cents on the dollar to make whole 62 billion in deeply compromised credit default swaps and URGED AIG TO SUPRESS DISCLOSURE OF THE PAYMENT DETAILS TO THE AMERICAN PUBLIC. Tim Geithner was the head of the NY Fed at this time, then just stepping over to become Treasury Secretary.
The US public was funding this nightmare and they were to be kept in the dark on the sordid details of which buddies paid each other what. (!) This is a freakin' outrage. If Tiny Tim gets to keep his job after this, honestly, God help America and democratic ideals everywhere. Obama, where the **!!& are you? Whatever happened to the doctrine of fairness: basic tenants of disclosure and that there cannot be an ‘apprehension of bias’ as justice must not only be done, but must also “be seen to be done’ in order to uphold respect for legal process.
Watch this morning's discussion with two of the more useful commentators, the always lucid Josh Rosner of Graham Fisher & Co and Keith McCullough of Research Edge. See: Time to say goodbye to Tim Geithner.
Meanwhile sceptics continue to mount about the poor volume, breathtaking stock rally the past few months. See Seeking Alpha: is the US government supporting the stock market? The most difficult question for investors is the extent to which they are prepared to stay in a Ponzi-like market. Sudden-sharp reversals should be expected. We should govern our risk accordingly.
And Joseph Stiglitz reminds us today that Wall Street is talking up the recovery to sell us stocks, while most independent economists are concerned about not ” if” “but when the next crisis is going to happen.” See Bloomberg clip: Stiglitz says Wall Street is Talking Up The Economy.
I think there is little doubt that taxes are headed up in most countries as the bill for the credit crisis continues to mount. Politicians promising otherwise should be discounted. See WSJ today: Testing Taxpayers' Pain Threshold.
Cory’s Chart Corner
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