Fascinating grilling of Federal Reserve Vice Chair Donald Kohn:
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Amazing questions from a Freshman Congressman . . .
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Overall household indebtedness is up from $7 trillion to almost $10 trillion since 2000. On this sum, we estimate, the American consumer has an annual interest bill of more than $500 billion; a sum, by the way, that vastly exceeds his current income growth." —Kurt Richebacher
"The Greek offer is not sufficient and they have to go away to come up with a revised plan," said a spokesman for the German Finance Ministry. The Greeks must first have a plan that satisfies the Germans which this comment states they clearly don't yet and then the Greek Parliament will vote on it this weekend. This said, whatever package gets voted on in Greece is basically an up or down vote on euro membership so we are entering another uncertain weekend for global markets. A failed vote will likely lead to a hard default which may be what...
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January 14th, 2009 at 7:39 pm
I didn’t find Kohn very reassuring….
January 14th, 2009 at 7:43 pm
Not that I necessarily disagree with Dr. Kohn but his performance was awful and kudos to the pressing examination of Congressman Grayson. I find it inconceivable that a man of Dr. Kohn’s stature and qualifications, one who theoretically enjoys independence from Congress, could be pounded into such a stuttering, lip-quivering, half-coherent mess by this nouveau neo- Nader wannabe congressman. Deserved applause to Alan Grayson.
January 14th, 2009 at 7:52 pm
We are in serious trouble.
January 14th, 2009 at 7:52 pm
[...] $1.2 Trillion Slush Fund [...]
January 14th, 2009 at 7:52 pm
One demerit to Grayson, though, for his nerve grating, peasant dialect; the cardboard drawl of words like “Credit Suisse” really put a burr under my saddle.
But a laudit for this line: “Wellll … what gave you the authority to say that?” Very zesty.
January 14th, 2009 at 7:54 pm
In the early days of the crisis you could see the fear in the eyes of Bernanke and Paulson as the reality of the credit crunch became clear to them – bank insolvency. Although December and January were easier, I am beginning to sense a growing desperation among some of the representatives of the powers that be. I think the markets sense that as well, which is why a lot of people have simply stepped aside for now. Thank goodness Obama projects an air of calm, and at least Bernanke no longer seems as hunted as he did in October.
Some of the minor players seem to be cracking under the pressure, this ordeal has been going on for a long time, and if Japan is a good model it will not be over soon. In addition, some of these people are not young. Soon we will need new and untainted members of the Fed. A number of this crew need to be dumped overboard as we prepare to tackle new and complex issues for which the present members are mentally unprepared.
January 14th, 2009 at 8:01 pm
In addition, some of these people are not young. Soon we will need new and untainted members of the Fed.
Ummm … isn’t that the role Governor Warsh and Governor Kroszner are filling? Regardless, let’s try to avoid blueprinting the future of the Republic on Logan’s Run . If we’re going to engage in sci-fi finance, at least let’s choose Dune as the national model, eh?
January 14th, 2009 at 8:14 pm
This is very embarrassing. This actually took place in our Capitol. But Barney Frank will get re-elected, and Kohn will retire with wealth.
I say let them refuse to borrow with disclosure and transparency and go belly up.
It’s seeming more like blackmail everyday, the payments just keep getting bigger. And the favorable prospects dimmer.
Don’t these companies have an obligation to disclose these loan/juice payments to their stockholders?
January 14th, 2009 at 8:25 pm
“the cardboard drawl of words like “Credit Suisse” really put a burr under my saddle. ”
You should be grateful he wasn’t from New Jersey where it’s “Credit Fuckin’ Swiss.”
January 14th, 2009 at 8:37 pm
felt like I was watching a parent catch a child in a lie, the child being Kohn.
January 14th, 2009 at 8:39 pm
Will someone explain to me how Barney Frank comes out of this with his reputation as a thoughtful advocate for the people intact?
January 14th, 2009 at 8:54 pm
Even though I’m a trial lawyer, I still feel embarrassed when I see a witness who looks this bad, esp. as he probably didn’t think he was doing anything wrong. He just doesn’t get it.
The Congressman knows how to conduct a cross or at least someone on his staff does. Someone else who is good is Carl Levin, who used to actually work as lawyer. He did such a great cross of some of the Wall Streeter pukebags involved in Enron that i had to send him an attaboy letter.
January 14th, 2009 at 8:55 pm
Let’s hear more of Grayson’s questions. I yield my 2 minutes to him, Mr. Chairman.
January 14th, 2009 at 9:08 pm
Wow. Kohn needs to step down. I dont care how good he is in finance and economics and how justified he is; this man’s presentation can cause a global meltdown.
January 14th, 2009 at 9:17 pm
Next question from Grayson: Hows about I come over there and whup your dissemblin’ ass on behalf of my constituents?
January 14th, 2009 at 9:44 pm
Next question from Grayson: Hows about I come over there and whup your dissemblin’ ass on behalf of my constituents?
Let us choose to keep the sabre-rattling of the proletariat to a minimum. Threatening the just and necessary social order never turns out well for anyone, most usually those doing the threatening.
When you reach up with your vaunted, strong hands to seize our palaces and our purpled then we will show you what true strength is … in the roar of shell and shrapnel and the whine of machine guns will our answer be couched. We will crush you revolutionaries down under our heel and we will walk upon your faces. – t.I.H. / J.L. – ’09
January 15th, 2009 at 12:33 am
mitchn: You are exactly right! Barney Frank is the epitome of what is wrong with Washington. If there was anyone more 2 faced than this guy it would be completely shocking. He makes politicians look bad!
January 15th, 2009 at 2:17 am
Kohn had a lousy performance (and I’m glad he got a hard time), but at the same time Grayson hammering on about mark-to-market was over the top…does he even understand the difference between a security and a loan? Just because the new kid in class talks a lot and gives the teacher a hard time doesn’t mean he knows a thing. Do we really want people with a complete lack understanding on the financial services committee at a time like this?