Listen to what President Obama has to say about the Stock Market decline....

[FrenchieCat]

in this nightline interview from yesterday.

It is the first thing discussed: http://abcnews.go.com/Nightline

What Wall street doesn't "like" about Geithner's plan, isn't the lack of specifics,
it's the fact that they won't be able to get TARP money,
unless they submit to an asset audit and valuation process....and the banks don't want that,
because of what might be found.

What Geithner stated yesterday in his address....."We cannot make that mistake. We believe that access to public support is a privilege, not a right. When our government provides support to banks, it is not for the benefit of banks. It is for the businesses and families to depend on banks. And it's for the benefit of the country.
.....
Now, here's what we will do: Our work begins with a new framework of oversight in governance on all aspects of our financial stability plan. The American people will be able to see where their tax dollars are going and the return on their government's investment.


They will be able to see whether the conditions placed on banks are being met and enforced. They will be able to see whether boards of directors are being responsible with the taxpayer dollars and how they are compensating their executives. And they will be able to see how these actions are affecting the overall flow of lending and the cost of borrowing.


These new requirements, which will be available on a new Web site, financialstability.gov, will give the American people the transparency they deserve.
........

Let me describe each of these three steps. First, we're going to require banking institutions to go through a carefully designed comprehensive stress test. This borrows the medical term. We want their balance sheets cleaner and stronger, and we're going to help this process by providing a new program of capital support for those institutions that need it.


To do this, we're going to bring together the agencies with authority over our nation's banks and initiate a more consistent, realistic, forward-looking assessment about the exposures on bank balance sheets, and we're going to introduce new measures to improve disclosure. Those institutions that need additional capital will be able to access a new funding mechanism that uses capital from the Treasury as a bridge to private capital.


The capital will come with conditions to help ensure that every dollar of taxpayer assistance is being used to generate a level of lending greater than what would have been possible in the absence of government support.


And this assistance will come with terms that should encourage these institutions to replace public assistance with private capital as soon as that is possible. The Treasury's investments in these institutions will be placed in a new financial stability trust.


Now, second, we will work together with the Federal Reserve, with the FDIC, and with the private sector to establish a public-private investment fund. And this program will provide government capital and government financing to help leverage private capital to help get private markets working again. This fund will be targeted to the legacy loans and assets that are now burdening many financial institutions.


By providing the financing the private markets cannot now provide, this will help start a market for the real estate-related assets that are at the center of this financial crisis. Our objective is to use private capital and private asset managers to help provide a market mechanism for valuating -- for valuing these assets.


Now, we're exploring a range of different structures, and we'll seek input from the public as we design this program. But we believe this program should ultimately provide up to $1 trillion in financing capacity, but we plan to start it on a scale of about $500
......

Our obligation is to design these programs so that we are achieving the largest benefit in terms of supporting recovery at the least cost to the taxpayer. And we take that obligation extremely seriously. "
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/10/AR2009021001227.html

[Undercurrent]

1. Exactly!

I said this in another thread where Geithner was called a Paulson clone.

Not at all.

Wall Street hates Geithner's plan. Not because of the lack of details. That was a bogus claim. The Wall Street and banker pigs hate it, because they don't want to be accountable. They just want sidle up to the government trough, suck up the slop, and be on their merry way.

[Pachamama]

5. I hope your right because I don't have very much confidence in anything related to TARP right now

the banking industry or the market.

I just feel sick to my stomach right now because I think the banks are going to continue not lending to people and the market is going to continue to sink.

[Skidmore]

2. Yes, indeed. The banking industry is trying to shoot this down.

The President and his people need to be all over this one and push this aspect of accountability hard.

[ProgressiveEconomist]

3. K&R (#5). I'm loooking forward to visiting financialstability.gov

Nice catch--most of the MM has been indecypherable on Geithner this week.

[girl gone mad]

4. Other that Geithner, NOBODY likes this plan.

Why waste time trying to spin it?

[RC]

6. What is wrong with this plan?

List them.

1.
2.
3.
4.
5.

[Solomon]

8. LOL Those numbers you listed might as well be hours waiting

for a reply. Or maybe days.

:rofl:

[RC]

18. Too bad we can't filter out those that have opinions but can't defend them.

But then some days nobody would be posting. :evilgrin:

[AndyA]

7. The free ride is over, and the banks and Wall Street powers that be now know it

That is why the stock market tanked yesterday.

They have now realized that transparency and accountability are going to be required going forward, and they have too many bodies hidden. So the same people who made a fortune off of this mess, who are also the same people who created it, are now running scared. They can no longer hide because of a negligent administration in power.

Bush is gone, and so are his no regulation, no accountability, hide everything policies.

It may get worse before it gets better, but the backwash is about to be flushed out and exposed. And I hope they are prosecuted, their assets seized to repay taxpayers, and they all have a future behind bars. Justice will have been served.

[bdamomma]

9. good Obama has them running it's about time.

[sundancekid]

14. I agree. Nothin' says lovin' like a little upcoming auditin' === nope, not what wall street wants

[DemReadingDU]

10. Here is the direct link to the Nightline interview

2/10/09 Obama on Economic 'Agony'
As market falters, Obama sits down for a"'Nightline" exclusive.
http://abcnews.go.com/Video/playerIndex?id=6851346

appx 16 minutes


edit for the story
Obama: 'There Is No Easy Out' for Wall Street
In Exclusive Interview, President Warns of 'a Perfect Storm of Financial Problems'
http://abcnews.go.com/Politics/Business/story?id=6844314&page=1

[firedupdem]

11. Thank you for posting this. I missed what Geitner had to say

yesterday but noticed on the news last night that the markets didn't like it.

This makes total sense. As the President stated earlier this week, the party is over! They cannot continue to get blind trust with the the tax payers money. They've already shown that they are not to be trusted.

[Clio the Leo]

12. Yes, and the gentelman Tweety had on last night was helpful too...

(video)
http://www.msnbc.msn.com/id/21134540/vp/29127154#29127154

He also said that Wallstreet wants the government to print more money and solve the problem. The President doesn't want to do that because it will cause deflation.

[glowing]

13. Exactly what I told my mother.. Its the rich bitches that think they are entitled to

money and their lifestyle and don't have to be accountable for it or to anyone. They pulled a hisssy fit. Fuck them.

[FrenchieCat]

15. Like our President said, he doesn't care if the markets don't go up

right today, or even tomorrow! It ain't about the "daily" activity that counts, but what the market does in a long run....cause he's not interest in a superficial bandaid.

[MzShellG]

16. Bingo!

Our president is right on the money. Wall street doesnt see dollar signs for themselves.

[uponit7771]

17. But Geithner should've explained it this way, he didn't. The president did which puts my mind at...

...ease about the depth of OBAMA's ability to communicate and understand (the guy might be Mensa material) but Geithner should've been able to relay that to everyone.

Coming to a meeting and sayin "I'll get back to yah in 2 weeks on that" is kinda Palin-ish