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Sunday, February 21, 2010

Angry

No point in getting angry. Geithner was beaten by negotiators far tougher, more experienced and motivated than he was. It is NOT the American way to get angry at a loser. Did we get angry at Farve or Manning or the Red Sox when they lost. No, we rightly viewed them as heroic against hugely challenging odds. We should view Geithner the same way. He never had a prayer against the 500 Goldman partners arrayed against him especially since one of them was brilliantly, cunningly, forcefully masquerading as his teammate. He never had a prayer.

Geithner was cut to ribbons by a school of sharks who beat him with a false bravado that would have put the Wizard of Oz to shame.

The people that snookered him had everything to lose while he had nothing to lose.

His opponents had built a massive fraud that was skimming off hundreds of billions of dollars in profits that were booked off shore so they were not even paying taxes. It is a fraud because their PR people were SAYING that they were bringing liquidity to markets because of the risks they were taking. In fact they rarely took risks hedging their bets with insurance. This is the fraud - that they tell us they are doing something good when all they are doing is gaming our financial systems.

When the insurance company went broke their perfect arbitrage broke. So they gamed poor Geithner.

So, to use an old Wall Street phrase - dont get MAD, get even.

END off shore trading and end arbitrage.

Make these traders take REAL risks and truly bring real liquidity to markets and make their trades transparent and only done in the US. Then tax them at the 90% rate because what they are doing still does very little for the people of the United States. If they leave the US, good. Good riddance.

This is the solution to this mess - this horrid, horrible, tragic wasting of our best minds on lives spent finding ways to play a game with numbers that does nothing for any of the less mathematically gifted citizens of the United States.

Getting mad at Geithner is beneath the dignity of the US Congress. They need to use their taxing authority to change the habits of many of our brightest Americans.

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