Wednesday, February 27, 2013

Ron Paul versus Tim Geithner

This is going to be interesting.

Former Treasury Secretary Timothy Geithner plans to hit the university circuit in the coming months, conducting a series of seminars on financial crises, WSJ is reporting.

Ron Paul has already started on the circuit.

Their messages will likely be the exact opposite of each other. Ron Paul is sure to explain how government involvement in the economy is setting things up for much greater problems down the road. Geithner is likely to cast himself as the selfless government servant, who first as president of the NY Fed and then as Treasury Secretary, saved the economy by stuffing hundreds of billions of dollars into the pockets of the banksters.

Will anyone really want to hear Geithner?  Dr. Paul, of course, will draw crowds.


  1. There was a very interesting discussion between Paul and Geithner a few years ago and Geithner's response was not what you'd expect:
    Paul: So my question is, are you familiar with the explanation of the Austrian economists, of the business cycle, how bubbles are formed and what we should do, and you shake your head yes, and if so, if you do understand that, which part of it don’t you like? And why don’t we look more carefully at those economists? They were right 10 years ago, I believe they’re right now. Why aren’t they consulted?

    Geithner: Congressman, I agree with much of what you said and as you and I have talked before in this hearing, I think you’re right to point out that a long period of low real interest rates around the world played a major role in contributing to this financial crisis, this real estate boom, this credit boom. You’re also right that moral hazard played a very important role, most dangerously in Fannie and Freddie and those institutions were allowed to grow to enormous size, take on enormous risk without capital to support those commitments because of the expectation the government would come in and protect them from the failures. I completely agree with you. Completely agree with you.

  2. Let me guess...The faculty will book Timmah! and the kids will book Dr. Paul.
    (couldn't resist South Park reference)

  3. Mike, spot on. The College Republicans at GW booked Paul for March 4th, 2013. I'll be there, with my $10 ticket.

    re: comment #1, you don't get the massive payouts both before and after the bubbles by being an Austrian. "I mean, I know you're right, Dr. Paul - it's just I am not going to *do* anything about it because it's more profitable for me to *not* do anything about it!"