Geithner just told Cummings that the reason they don't want to disclose who the counter-parties in the AIG fiasco were is because it would threaten their ability to recoup taxpayer money spent on these bailouts. Essentially, if the market had this info, it would value related securities more realistically and the Treasury/Fed would lose out on their operation, costing the taxpayers money.
So, Geithner just admitted that they are trying to pull one over on investors and deny them material information in order to trick them into paying more for various assets than they're worth, in order to be able to pay back the taxpayer.
Isn't this called fraud?
Wednesday, January 27, 2010
Geithner Conspires to Dupe Investors
Taylor Conant emails:
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It's only fraud when us peons do it. When you're above the law it's standard operating procedure.
ReplyDeleteI had a hard time watching the testimony today because not one Congresscritter asked either Geithner or Paulson HOW they calculated that the damage of a systemic collapse would be greater than the damage of massive government bailouts. That's an important question to ask if you're trying to answer the question "Were the bailouts necessary?"
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