Geithner should be fired right away - his latest plan to leverage HFs with cheap money is outrages

Finally it happens Citi asks for more money as I pointed out a few times months ago Citi was rather my first candidate to go bust as they own this huge 700 bil worth of toxic assets so they needed the whole TARP amount for themselves. Pandit who could not even run a Hedge fund which went bust within a year after Citi had bought it is now running the bank give me a brake. This guy is totally overrated as most executives on Wallstreet are.
Now Obama joins their ranks by giving phony assumptions over the budget in 4 years. First of all he might have more chances to win a lottery if he played every day than reaching that budget - no way rather stick another zero to it and you might be closer to reality. He came to DC with the hype he would do things different but that proves to be rather a nice try to put it in a positive spin. What can be different if we see the old Clinton team back who helped to create this mess with allowing bank regulations to loosen up as Mr Clinton admitted. That's another topic though and the problem of the Obama administration will be to stop the hyperinflation it is triggering now which will be visible in a year from here probably. They always say the taxpayers money and its rue to some degree but even the taxpayer 10 generations ahead can not pay those debts. Japan was lucky as they did those measures as all others were relatively sound but all at once printing money will cause a global disaster at some point which inevitably will lead even to war as that is the outcome of such stupid measures. Now the governments are doing what the banks did leveraging up and there is no one to bail them out. That is the irresponsible part to say that banks should run themselves and throw good money after bad - the model of greed has collapsed and you can not let the same guys who ran us all into this disaster try to heal the system that's insane. Investment banks have to be shut down - period -- as the latest results proof the latest huge losses came from new bad judgement at MER and Deutsche. No one can afford to let them play around no new risk at all should have been the parameter to receiving TARP funds. Basically investment bankers are not as smart as people assume they are basically smart in screwing their clients. Lets look at the facts more than 50% of all Mergers do not work out, the so called traders do not make money because they are smart (a few exceptions thouıgh) because they have a information advantage and most of the time that works only on upside markets as we can see clearly. What is left is commission business and asset management and at the later one the managers are not fit for their jobs so what is left after all almost nothing which can produce results - so this discussion about them loosing talent is pathetic.
Finally lets come to this absolutely incapable Geithner but that's kind of true for most of the Obama administration or most of DC which party ever. They are ase useless as most bankers are when it comes to the hard times. Geithner idea that Hedge Funds need cheap financing to buy all those toxic stuff is a manifest of his incapability. He wants to leverage Hedge Funds up with cheap money to buy the toxic stuff - give me a freaking brake. I thought they had learned something but they suggest to do what brought all this mess upon us leverage them up with taxpayers money. Just for that suggestion he needs to fired but not only him since he must have backing from his boss for such a bull..... idea.

Excerpt

Feb. 23 (Bloomberg) -- Treasury Secretary Timothy Geithner’s financial-rescue plan may be doomed if he doesn’t offer low-cost loans to hedge funds and other investors to help them buy toxic assets weighing down bank balance sheets.

Creating a “bad bank” or “aggregator bank” that would use federal funds to acquire and warehouse the assets, as some have proposed, would be costly for taxpayers and require too much government interference, say two experts on distressed securities who have pitched an alternative plan to officials.

John Ryding, chief economist at RDQ Economics LLC in New York, and Matt Chasin, chief operating officer of Sorin Capital Management LLC, a Stamford, Connecticut-based hedge fund that manages about $1 billion, say the Treasury Department should provide loans at commercial rates to investors for up to 50 percent of the purchase price of securities. The financing would be for as long as the maturities of the assets being acquired.

Excerpt 2

Citigroup is in talks that could result in the U.S. government increasing its stake in what was the country's most valuable bank, a source said, and the Wall Street Journal said taxpayers could own as much as 40 percent of the ailing lender's common stock.

Citigroup shares in Frankfurt rose 26 percent following the reports, while U.S. stock index futures pointed to a strong open for Wall Street.

The Financial Times also reported that Citi is pressing the U.S. government to agree on a new capital injection that would increase the authorities’ stake in the troubled bank, but stops short of an outright nationalization.

The Journal reported on its website that Citigroup executives were hoping the talks with federal officials will result in a stake closer to 25 percent.