Gary Weiss of Portfolio has just published a profile of Treasury Secretary Tim Geithner:

He recalls my first experience with Geithner at an NYU conference on risk management hosted by the Stern School several years ago.  Even though Geithner admitted yesterday in his congressional testimony that he has no actual financial markets experience whatsoever, you would think that an economist and bureacrat focused on financial policy would have some passing acquiantance with Basel II, especially as the President of the FRBNY.

The more I see and hear Secretary Geithner speak on financial services policy, the more I am convinced that this man has not a clue what he is doing and must therefore be acting at the instruction of others — Bob Rubin, Larry Summers and the folks at GS — IMHO.



Category: Bailouts, BP Cafe, Federal Reserve, Politics

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

149 Responses to “Portfolio Cover Story on Timothy Geithner”

  1. Mannwich says:

    @karen: Well, since you put it that way……

    I’m very confused these days and not too proud to admit it.

  2. karen says:

    Jeff, is your brother still living in kauai? every day places are coming on the market.. i’ve been following the market there for months… rents are dropping and prices as well. some complexes in princeville can be described as ghost towns.

  3. DL says:


    There you go again.

    I’m not going to bite this time.

  4. leftback says:

    @ben22: Fascinating stuff on the adventures of retail investors. Please keep it coming.
    The comment: “munis don’t default” reminds me of Mish: “What Can’t Happen, Is About To”.

    @Mannwich: This is noise. The PPT is just day traders selling FAZ. Just watch the charts.

    @Karen: There are times that I regret not being on the R train, especially when it’s raining on my D train and yours is heading to the beach. But as we have discussed here, this is a zig-zag descent to the bottom.

  5. Mannwich says:

    @karen: Yes, he is. In fact, he and his wife’s new house up on a gorgeous vista near Kileaua point (sp?) (full views of the ocean and mountains down by Hanalei Bay) was recently completed. They’re both visiting right now for three weeks (they live full-time in Folsom, CA and South Lake Tahoe, not bad) after tax season ended. I gotta try to make another visit next winter. My wife and I honeymooned there in ’03. Loved it. Maybe we’ll look into buying there at some point?

  6. karen says:

    For more views on inflation and the usd, read what some of these analysts have to say… martin murenbeeld is a favorite of mine… extremely conservative. (i posted this under the gold topic as well.)

  7. karen says:

    Jeff, yes, that’s the spot to be… husband was just there for a month on a scouting mission and is headed back for 6 months as soon as we find the right place to lease… maybe they even surfed together : )

  8. Mannwich says:

    @karen: Let me know if you need any contacts out there. I think my brother and his wife are fairly active in the community (for part-time residents) and trying to get more involved. I think their goal is to eventually live there full-time. Their friends also just moved there to live full-time.

  9. karen says:

    i do wonder what aapl is gonna do to us after the close… likewise CMG, dbl volume on some short covering perhaps… 24% ratio… it’s up nearly 50 pts from the nov low, and 40 pts from the march low… and i never bot any… : (

  10. harold hecuba says:

    sooner or later (i think sooner) aapl is going to drop the is a consumer discretionary company with pricey products. if aapl somehow reports it had a blowout quarter i would think it is well priced in the stock. this stock looks like it has 30-40% downside from here. maybe i’m wrong maybe not

  11. rktbrkr says:

    apropos a zombie Treasury Secretary

  12. Mannwich says:

    I want to pick up some QID but AAPL is scaring me off. Can’t believe people are still paying top dollar for their products. If the announce strong earnings again in this climate, I really gotta hand it to them for getting folks to pay up for their products.

  13. ben22 says:


    If you are looking at infrastructure, it might be worth checking out MTW. I never really looked it over in detail but I know it’s gotten killed and it could be a pretty aggressive grower if things do get better.

  14. karen says:

    i know we bot an iphone and a macbook this quarter… money spent at itunes, of course. unsure how much of my at&t bill goes to apple.. plan to buy 2 more macbooks and a printer by year end.

  15. Mannwich says:

    On another note, ESPN looks gives us a look into Lenny Dykstra’s life and our friend Jim Cramer, who seems awestruck by one his Philly sports heroes. Seems to me like ‘ol Lenny is symbol of this era of excess…..

  16. call me ahab says:

    harold – way to commit with your “maybe i’m wrong “maybe not” comment- but I have to agree, I don’t understand the fascination w/ AAPL-

    same with Chipotle as mentioned by Karen- basically rice and tortilla shell, some beans and a bit of meat- eaten there a couple times and haven’t been back- been a couple years- so who knows- maybe there doing something different now

  17. Mannwich says:

    @ahab: We have Chipotle’s here in the TC and I think I’ve maybe eaten there once in my entire time here. Actually, I think it was in CO, so maybe I’ve never eaten at one here! I don’t get it either, it’s a chain burrito place and not all that great when compared to authentic places out west but then again I don’t eat out much. Much healthier to eat at home. Those with high BP like me need to stay cognizant of that!

  18. karen says:

    the cmgs in the college towns are packed..

  19. Mike in Nola says:


    Yeah, Apple is good at cooking the books. And it’s all about beating expectations. I bought QID too early at the end of last week. If Apple has great earnings, I will buy more tomorrow and be patient.

  20. call me ahab says:

    karen- I know- my oldest son loves the place- but it is in my mind a pretty bland rice stuffed burrito- big though- so maybe that’s what counts to the younger crowd- I have to agree w/ mannwich- I am always on the lookout for a local place fo just about any kind of food.

  21. leftback says:

    CMG rocks. It’s a great place to meet chicks.
    Manny, you should stay away, bad for your BP.

  22. Mannwich says:

    @karen: Why though? For a mediocre $7 burrito? I don’t get it. I’d rather eat at McD’s for less and I don’t eat there either unless desperate and/or on a road trip.

  23. Mannwich says:

    @leftback: BP, among other things (the other being a clinically bad “system”, I’ll just leave it at that)….. ;-)

  24. Mannwich says:

    @Mike in Nola: Yes, Apple great at the books cooking and sandbagging (beating low hurdles). It seems to work for them, so I expect the same today.

  25. call me ahab says:

    meet chicks??? HAHAHAHAHHA

    mannwich- thanks for not filling the details

  26. rww says:

    Can’t know where we’ll end but another great call AT

  27. Mannwich says:

    @leftback: Honestly, are you really Ted Bundy? Do they allow blogging behind bars? Meeting college chicks at the local CMG? C’mon, man……..

  28. call me ahab says:

    market is fading fast

  29. Todd says:

    Looks like a perfect round trip to no where today.

  30. Andy Tabbo says:

    rww. thanks. indeed, this looks like buyers have been rejected into critical resistance levels. the daily candlestick has now turned into an ominous doji star. Will need a down day tomorrow to confirm this, but today was a victory for the bears….we’ll see how the next battle goes tomorrow.

    where’s dead hobo? wonder if he sold into the 861-865 zone cited by witchcraft ‘technical analysis’ this morning or if he needed me there to hit the Sell button for him. (market peak 861.78)

  31. batmando says:

    ahab @ 3:11
    “Chipotle – rice and tortilla shell, some beans and a bit of meat-
    All prepared fresh from quality ingredients at fair price = good value, esp. for a chain
    best you can get in most of the mid-west except for the Mexican owned places in small towns serving the migrant farm workers, but of course nothing like I used to eat in the San Joaquin Valley when on the road in a former life

  32. call me ahab says:

    HAHAHAHAHAHA- I was so upside down on QID today- market Gods took pity upon me- now it is up to AAPL and what tomorrow brings

  33. cjcpa says:

    If you could hit the buy *and* sell buttons for me, that would be great.


  34. Mannwich says:

    Couldn’t pull the trigger on more more QID in low 39′s today. Just couldn’t do it. Kind of wish I had now but things could change dramatically after AAPL reports today. Better safe than sorry at this point. I’m already pretty short at this point.

  35. call me ahab says:

    batmando- I guess my biggest problem with Chopotle is that it’s bland- at a cost of $6 or $7- the appearance is that you are getting more than you are- becuase rice is about as free as food gets- but if it had some flavor then on might be on board.

  36. karen says:

    ahab… you must not be using their salsas! that said, i prefer my own cooking… but for kids at university, it’s wholesome, quick, food and 2 can split one $8 item. my son has dragged me in twice on my visits to berkeley… haven’t been recently but he assures me it’s still very busy.

    anyone that’s trading without real time charts is not playing with a full deck imo. : )

  37. greg says:

    Mike and Mannwich

    Apple cooking the books? Do you mean cause they never give Wall Street proper guidance? If you were Steve Jobs would you give Wall Street any help, especially now after it is evident how completely devoid of any intelligence, they are? Ever notice no matter what guidance Apple does give, the STREET always gets it wrong, always.
    You know how you yourself probably speak differently to a small child than you do to an adult, well that’s how Apple, I think, feels they have to deal with Wall Street, you know, so they at least have a small glimmer of hope in understanding how an actually well run company executes.

  38. Mannwich says:

    @greg: I have no problem with them not offering guidance. It’s their prerogative but I do think this allows them to sandbag a bit.

  39. Mortimus says:

    Your advice has been downright masterful. You have made a convert out of me, and I now subscribe fully to your TA witchcraft.

    Thanks again for sharing.

  40. Mike in Nola says:

    Mannwich: Sometimes it’s good to be chickern :)

    There will be a much better opportunity tomorrow or later after CNBC talks about how Steve Jobs and Ebay will lead us out of the recession.

  41. greg says:


    I’m not so sure it’s so much sandbagging as it is a deliberate attempt to treat Wall Street with the contempt they so richly deserve.
    Their earnings just hit, and once again Wall Street wasn’t even close. In case this doesn’t sink in for the analysts, I will say what I’ve always said about Apple…the recession will not affect them, period. If anyone doesn’t get that, they don’t get Apple. Go cover someone else, like Dell or something.

  42. karen says:

    OT: Stand By Me compilation from various street artists!

  43. leftback says:

    AT: Top witchcraft, mate. Again.

    AAPL is a superior company with superior products. It has only taken Middle America about 20 years to see that Windows is a piece of crap and if you buy a Dell that runs Windows it’s cheap – but still a piece of crap.

  44. Mike in Nola says:

    greg: disagree with you on Apple. They sell consumer electronics and will take a hit. They sell to the more affluent, who will take longer to feel the heat, but eventually will as we are seeing here in Houston. Also, much of what we saw this past quarter was tax refunds. My son got $800 back and immediately went out an bought a 22″ lcd monitor.

    Sales of Macs dropped a bit. Win7, even though it’s really only Vista 2.0, is generating a lot of buzz without the moniker and the price advantage of pc’s may make that worse in an ailing economy.

    Apple was propped up by iPhones and iPods, both of which markets are being flooded with competitors. At some point theywill have to compete on price and lower margins.

  45. Mike in Nola says:

    Just saw leftback’s comment. Seems we have several fanboys here :)

    I think the electronics market will follow the general consumer market. Look who’s doing well there: MacDonalds, Walmart and storebrands in groceries. If it’s a matter of getting something may not be quite as good (or perceived as not as good :) ), or of getting nothing, the lesser wins.

  46. Mannwich says:

    Agreed, Mike in Nola. We’ve heard the same thing about the rich and their home prices “never going down”. Denial is STILL strong in many parts of this country and especially strong with this over-c0nfident bunch. Once they start getting clobbered, higher end products like Apple’s will take a hit. They won’t get clobbered as much, perhaps, but they’ll feel it, just like other so-called recession resistant sectors/companies like health care, pharm, etc.

  47. call me ahab says:

    a person would think so Mike- not saying AAPL doesn’t make a decent product- but at twice the price- that’s what I don’t understand- bit of hype I think and the added advantage of having smaller market share- so less saturation with viruses and malware designed to attack that system- time wll tell how long thay can keep the “hip” image

  48. WaveCatcher says:

    When Geithner states that the vast majority of US Banks have ample capital, he is blatantly deceiving the public by implying that the banking system is solvent. He is using statistics to trick the public.

    There are thousands of FDIC insured banks, and the financial crisis has hit mostly the few LARGEST banks only.

    Out of the thousands of FDIC insured banks, the vast majority may be well capitalized, but unfortunately the LARGEST 25 banks are likely insolvent due to toxic assets. The vast majority of banks never got caught up in the fraudulent lending practices “innovated” by the LARGEST banks.

    Too bad Tim that the vast majority of bank assets are held by the LARGEST 25 banks!

  49. bdg123 says:

    I think what the author is trying to state in more cogent terms – without putting words in his mouth – is that bureaucrats don’t have a systemic process for analyzing complex systems. It matters not whether it is a Republican or Democrat, the reality is that bureaucrats are not prepared to make the most informed and intelligent decisions on behalf of the American economy. And that their policy is often fraught with risk for this very reason.

    This emotional yapping that somehow implies political ideology behind these observations are foolhardy.