The U.S. Treasury, under the mismanagement and lack of leadership of Timothy Geithner, seeks even more control over financial markets and mirror the socialist power trip in an effort to crumble any recovery and tighten the grip on the economy (Treasury asks for control of derivatives market; AP). One of the least intelligent representatives of the human species now seeks control of the most sophisticated part of financial markets. Geithner, who over the course of his career made nothing but mistakes and enforced counter-productive moves, has no idea about how the markets work.
Financial markets do not need to be fixed and over-regulated, they need to be left alone as they work to perfection. Dumb Money companies who were run by idiotic management teams were forced to fail, such as Bear Sterns, Lehman Brothers, Washington Mutual in the financial sector; Chrysler in the auto sector and AIG as well as GM and Citigroup will follow soon, Bank of America and plenty of others are lined up for failure, too. The system works perfect.
Assume you purchase a new car and it runs just fine until one day you decide to run it into a concrete wall at full speed.
Would you go to the auto manufacturer and blame them, force them to build better cars?
Exactly, you would not unless you are an idiot. The same hold true for global equity and financial markets.
The Treasury, in yet another brain fart, wants to extend their assistance for failure to insurers (Insurers get preliminary OK for Treasury funds; AP). Apparently insurers have not learned anything from banks who regret ever taking socialist dollars. U.S. Bancorp is just the latest bank who scrambles to rid itself from the socialist parasite which came with TRAP money (U.S. Bancorp CEO: We could exit TARP in a few weeks; Reuters). TARP, which was designed by Dumb Money for failure, has totally ignored the 8,000+ small banks (Small Banks Need Capital, Too, But Could Face Harder Time; CNBC). They should be very happy about that as it will ensure that those small banks who deserve to fail will do so and those who deserve to succeed will grow bigger over time as they snap up assets of rivals while TARP will crumble those destined for failure eventually.
AIG is just one of those prime examples of how TARP only delayed the inevitable. AIG was destined for failure but TRAP get them afloat for a while in an artificial bubble. $200 Billion later, lawmakers question the health of AIG (US lawmakers question AIG plan, future; AP) while AIG's CEO Liddy defends the worthless company with his worthless input (AIG's Liddy: We don't need more government money; AP). Lawmakers question AIG's health about $200 Billion and nine months too late but the second wave of the financial crisis should take care of that. Freddie Mac, just like Fannie Mae, can follow AIG hand in hand (Freddie Mac seeks $6.1B in US aid after loss; AP).
In the meantime, documents were revealed which indicate that the International Beggar himself, Paulson, forced nine banks to accept TARP money (Documents: Paulson forced nine bank CEOs into bailout; AP). That is one way to crush nine competitors of his former employee, in which he holds a huge stake, Goldman Sachs. The potential collapse of Goldman Sachs last year paved they way for TARP and of course TARP backfired. Goldman Sachs rushes to repay TARP and hopes to move on unscathed. Paulson is not the only one in trouble as the FBI probes insider trading by two SEC enforcement attorneys (FBI probes possible insider trading by SEC lawyers; AP). The SEC is just one institution which enjoys even more power under Obama and therefore further hinders a financial recovery.
Remember the rating agencies and how they were constantly wrong with their ratings and all the criticism they drew?
They claimed everything is fine and CDO's are safe, until it all collapsed and then they changed their ratings. Well, at least S&P tries to avoid the same mistake and offers a first insight into reality (U.S. banking crisis may last until 2013: S&P; Reuters). This is the first attempt to break the ignorance and false optimism, although the 2013 target is still very optimistic. Nevertheless, it is a start and maybe more beneficial steps will follow, time will tell.