Treasury Secretary Timothy Geithner’s speech on TARP yesterday was long on platitudes and short on details. With no specifics regarding the Troubled Asset Relief Program (TARP)—other than a new term, the Financial Stability Plan—financial stocks—especially banks—tumbled. The lack of detail, and the concept of a “stress test” for banks in Geithner’s non-plan led to the Dow plummeting more than 380 points.
Former Secrectary Henry Paulson didn’t have a plan, either, and ordinary folks have little patience for good money after bad. As it turns out, the former Goldman-Sachs CEO shorted taxpayers by a third. Besides not getting our money’s worth for the first $350 billion of the financial bailout, since there’s been no loosening of consumer credit, nobody knows where the $350 billion went.
While neither Geithner’s speech nor Treasury’s “fact sheet” had anything of consequence, the stock market fell more than 380 points. Duh! As Simon Johnson said about Geithner’s remarks, “This is not a plan.” The end result is Geithner’s big speech was a failure!
So, we still have no tangible plan, even with Geithner’s statement. The expenditure of TARP funds is no less transparent, despite claims to the contrary. Oh, and disregard the bonus and big salary stories, too—”it’s unfair,” JPMorgan Chase CEO Jamie Dimon said. Wah! If your company is loosing money, there should be no bonuses, period. If your company is loosing money, salaries in excess of a $1,000,000 are simply unacceptable.