William K. Black on Geithner: "The Guy Has a Track Record of Failure Evereywhere He's Gone"

[leftchick]

Published on The Smirking Chimp (http://smirkingchimp.com)


http://smirkingchimp.com/print/21158/

By Cenk Uygur
Created Apr 7 2009 - 9:35am

We recently had James K. Galbraith <1> on our show <2> and since I think he is one of the top economists in the country and he has been critical of the Obama administration bailout plan, I asked him if he could pick one person he would put in charge instead who it would be? He said William K. Black.

So, we just had Professor Black on the show to get his perspective on the bank bailout plan. Remember, he was one of the top regulators who helped to successfully steer us out of the S&L crisis. He is also the author of "The Best Way to Rob a Bank is to Own One."

His analysis of the Geithner bailout plan was devastating. First, you must understand this point he makes - if the banks are not insolvent, why do they need a $2 trillion bailout?

Of course, they're insolvent. That's why we have to put so much money into them in the first place. To claim otherwise, as the entire Obama Treasury Department has, is at best incredibly disingenuous. Prof. Black then goes on to explain that Geithner's plan is "the worst possible strategy" because it is a "fundamental misdiagnosis of the crisis."

You can watch the whole interview here <3>. Here is a slightly shorter version of the interview:


Here are some of the devastating quotes from the interview:

Cenk Uygur: Would you suggest that some of these top bankers in the country be arrested for fraud?

William K. Black: You obviously have to make the ... do the investigation, but yes, there would be plentiful numbers of the top executives that we would find committed these kinds of frauds. They certainly have institutions that follow a pattern that only makes sense if you're engaged in accounting fraud.

...

William K. Black: They helped make the Asian crisis worse.

Cenk Uygur: Really? How?

William K. Black: They used the IMF type policies that make things worse and then he went to IMF and made things worse. The guy has a track record of failure everywhere he's gone.

...

William K. Black: This is the worst possible strategy.

...

William K. Black: If we just lie to the people enough and if we can get them believe our lies, then they will become confident and then we'll get through the recession at next to no cost ... and the banks will all be fine.

[FLAprogressive]

1. K&R

[slipslidingaway]

2. 2004 CNN story - FBI warns of mortgage fraud 'epidemic'

http://www.cnn.com/2004/LAW/09/17/mortgage.fraud/


Seeks to head off 'next S&L crisis'

From Terry Frieden
CNN Washington Bureau

Friday, September 17, 2004 Posted: 5:44 PM EDT (2144 GMT)

"WASHINGTON (CNN) -- Rampant fraud in the mortgage industry has increased so sharply that the FBI warned Friday of an "epidemic" of financial crimes which, if not curtailed, could become "the next S&L crisis."

Assistant FBI Director Chris Swecker said the booming mortgage market, fueled by low interest rates and soaring home values, has attracted unscrupulous professionals and criminal groups whose fraudulent activities could cause multibillion-dollar losses to financial institutions.

"It has the potential to be an epidemic," said Swecker, who heads the Criminal Division at FBI headquarters in Washington. "We think we can prevent a problem that could have as much impact as the S&L crisis," he said..."

[LeftHandPath]

3. "We need to get credit flowing again..."

Really means - we need people to have more debt.

Debt. The only answer the Keynesians can come up with. More debt will solve our debt crisis.

Up is Down
Black is White
War is Peace
Freedom is Slavery

and lastly

Ignorance is Strength