Comments on: (Summers x White House now) ÷ Fed in Future = Geithner in Treasury

By: leftback

leftback — Sat, 22 Nov 2008 18:12:09 +0000

I like the fact that Geithner doesn’t talk much. His obvious preference to be in the background rather than on TV will be a tremendous asset, and he will eschew the Greenspan tradition of Fed Chair as cult figure. Paulson and Bernanke’s penchant for empty statements has caused enormous damage to the markets of late. Fed Chairs should be seen (but only on the way toFOMC meetings) and not heard.

Hopefully Geithner will take a page from the Volcker playbook and let his actions do the talking. I completely share Chris Whalen’s distaste for Summers and Rubin, but I am already encouraged by the fact that Obama did not choose either of them for this most important post of all. The way I see it is that it was not possible to get through this crisis without a link to Paulson. You have to have someone who knows where the bodies are buried and Geithner is the most acceptable, or least objectionable alternative as Chris would probably express it. Having Summers along is also a necessary evil to keep the Clinton wing happy. The junior members of the team will be of interest – they often do the heavy lifting.

By: wu.ming

wu.ming — Sat, 22 Nov 2008 15:20:13 +0000

“The promise of the Fed job is, of course, highly contingent. No one knows what world we’ll be living in two years from now. But shaking up the Fed might not be a bad thing either.”

excellent point. thus to assume that Summers will be FED chair in 2 years is just that, an assumption.
and no one is taking into consideration that Mr. Geithner perhaps might have ideas of his own, beyond what he has been directed to do from his recent bosses (Summers, Bernanke, the banks, et al).
and considering that Mr. Geithner majored in East Asian studies, it does seem like “On the face of it, this is a good deal all around. ”

plus, anything to make Mr. Bernanke squirm a little bit (even if it’s a bluff) is a good thing.

By: Chris Whalen

Chris Whalen — Sat, 22 Nov 2008 15:05:30 +0000

As per my comment on CDS thread

By embracing Geithner and the AIG derivatives bailout, President-elect Obama is embracing the scheme directed by Hank Paulson et al at Goldman Sachs and executed by Tim Geithner and Ben Bernanke. Having Larry Summers waiting in the wings to replace Uncle Ben does not reassure me in the least and only confirms that the culpables are in command under whatever party pretends to hold power. Does anyone find it remarkable that members of the BIG MEDIA wax effusive about the influence of Bob “MIA” Rubin in the Obama camp as Citigroup slides into a government takeover?

There seems to be very little “change” under Obama when it comes to the financial portfolio of the government of the United States.

By: mlomker

mlomker — Sat, 22 Nov 2008 14:47:13 +0000

I’m getting close to not watching the news any more. Whenever the market does something that they don’t understand they find a reason for it. Friday’s move had absolutely nothing to do with cabinet appointments.

Futures could not trade below S&P 746, which was the most probable wave 5 target of 1.618. Then wave 1 took us up to the 800, which not at all coincidentally is where a ton of options were sitting (nice round number). Whatever big player had sold a ton of puts for 800 decided it was cheaper to move the market back up than pay out.