Well, it appears to be a consensus, Geithner tanked yesterday.

[Beacool]

One article after the other criticizes Geithner for his lack of specificity.

http://www.nydailynews.com/opinions/2009/02/11/2009-02-11_obama_and_tim_geithner_must_quickly_deli.html

http://www.usatoday.com/money/markets/2009-02-10-stocks-tuesday_N.htm

http://www.nytimes.com/2009/02/11/business/economy/11geithner.html?_r=1&ref=todayspaper

http://www.realclearpolitics.com/articles/2009/02/is_geithner_ready_for_prime_ti.html

http://online.wsj.com/article/SB123431465155370931.html

That's just a sampling, there's more.

So, now what?

:-(

[babylonsister]

1. Now he has to get specific. nt

[Beacool]

12. I hope that he does so today.

I heard the same criticism last night on the various news channels. I'm no economist, but my brother is and he was not too happy (My much older bro has two PhDs in economics and is an economist for France and Spain, no slouch is he).

:(

[babylonsister]

18. Don't hold your breath about today.

I can't imagine they'd promote a half-assed plan without having an actual full-fledged plan. Maybe they think we can only take the overwhelming facts in increments. Whatever we hear, I'm thinking it won't be good.

[Clio the Leo]

2. Not a consensus...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=8188498&mesg_id=8188498

and

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x8188390

It's important that we not get caught up in the hype .... Wallstreet tanked because they're mad that the President is not gonna give them a free ride.

[Beacool]

13. I hear you, but I'm not sure.

They wanted to hear details and got generalities. I sure hope that Geithner does better today.

:-)

[Clio the Leo]

23. No, they just didn't hear the details they wanted. ;) NT

[uponit7771]

3. Calling a meeting to announce tactics with no specifics wasn't a good idea, I'll get back with you..

...in 2 - 3 weeks sounded Palin-ish

[Beacool]

14. I think that you summed up what most experts have been saying.

Why call the meeting in the first place if they still didn't have a detailed plan of action? The market reacted by losing 5% of its value, though it's slightly up today.

:(

[PretzelWarrior]

4. ever read Noam Chomsky's book "Manufacturing Consent"? if not you should

same applies here. constructing a narrative for the masses to choke down with their lean cuisines is what the mainstream media is all about. which is why they're also looking down their noses at HuffPo being called on by Obama.

This administration will break the deathgrip the financiers and their brethren the media moguls have on American politics and way of life. They will catch a lot of criticism in the process.

They're still trying to come to grips with the gargantuan mess left by Paulson and company and trotted something out so the world markets wouldn't go into free fall.

You will see emerging specificity as we go forward. He wasn't about to give them the VERY BAD NEWS specifically yesterday. And the news will be bad.

[FormerDittoHead]

10. The missing piece of the puzzle: WHERE did the narritive come from?

It's known that AS he started speaking the market was moving down. SIMULTANEOUSLY this narrative about him not giving enough details, whatever, was picked up EVERYWHERE.

Needless to say we've seen this done before. I IMMEDIATELY knew that this wasn't the CAUSE but it was the TRIGGER (I mean, what were they expecting to be GOOD news?).

The question I have, however, is how does this coordination happen? Billions lost in value, everyone working in concert to execute something which doesn't really exist - the "word", this daily narrative which the market news subscribes to, HAS to come from a centralized source, however, because if it didn't, others would (should?) be buying up the stocks which were being dumped...

The fact is that things have to get so bad that people start selling their 401k's for dimes on the dollars they put in for things to turn around so they can start all over again...

[dionysus]

5. 2 for 2 so far today eh?

:hi:

[Beacool]

11. Come on, this is no flame post.

The mess we are in is too serious to be cavalier about it.

Take blankie to be laundered, it probably needs it.

;)

[bluestateguy]

6. Uh oh, can't disagree with the Bos-Wash corridor consensus

I mean, they never make mistakes. They are Very Serious People who know what they are talking about.

[leveymg]

7. You know, Geithner was head of the NY Fed Reserve as Wall St bubble blew up, melted down.

He may not be the right guy to fix the problems of a failed financial system he regulated.

The question needs to be asked, but in all fairness, he may turn out to be exactly the right guy to clean out the stables.

[PretzelWarrior]

9. do you even know what NY Fed Reserve does?

yet another who is going ahead and running with second hand right wing talking points re: Geitner

[leveymg]

15. Do the terms repo market corner, treasuries hoarding, T-bill shorts mean anything to you?

All this happened under Tim Geithner's watch. See, http://www.dailykos.com/comments/2009/2/9/234340/6189/833#c833

Any idea what happens to a highly-leveraged institution holding ABX.HE futures when the cost of a haircut doubles? Any idea what a repo fail is? If you want something more academic, try this NBER paper: http://feedraider.com/item/19494236/Marginal-Revolution/What-happened-in-the-REPO-market/

Please, don't cast blind aspersions.

I will acknowledge there is some sort of karmic justice in putting him on the hot-seat, but that's no right-wing talking point.

[firedupdem]

8. That's the theme of the day and it will be pushed and pushed

down the throats of anybody who will listen. The financial industry doesn't like the fact that "the party is over." They will be required to act in a more responsible manner and they don't like it.

[On the Road]

16. Frankly, I'm Wondering if the Market Tanked

because Geithner didn't give Wall Street the blank check they were hoping for.

Banks, for example, wanted to unload their bad loans at premium prices. They will not be able to do that.

[eleny]

21. That's what Steven Perlstein of the Wash Post said yesterday on Hardball

He called them cry babies because they didn't get what they wanted and so they're now hunkered down.

[On the Road]

27. Really?? Hahahaha

I didn't see that.

The market's all about expected profits. That can come from an anticipated recovery (which only a minority is buying into now), or it could come from direct government action.

The next question is whether the movement was due to Geithner's taking away the prospect of an overly generous program (good) or whether it is due to increased fears of bankruptcy due to an ineffective plan (bad).

[eleny]

28. SP believes it's because they didn't hear what they wanted from Geithner

That they interpreted the plan as bad because it wasn't a blank check.

Sounds like separation anxiety since George left the White House.

[sundancekid]

17. and NOBODY got that it was a shot to the a$$es of those testifying today ...

when will we EVER learn the chess master strategy ... do you NOT think that the "lack of specificity" might have been planned all along so that the bank CEO's today would have to mind their p's and q's even more SUBSTANTIALLY so and not just blather on ... nothing says lovin' like upcoming auditin'

[Beacool]

19. I don't know.

As I said, I'm no economist. That's why I'm asking people's opinion.

;)

[Barack_America]

20. He didn't tank according to the almighty Krugman. nt

[Beacool]

22. I like Krugman, but he seems to be in the minority in this case.

The radio just said that the markets worldwide also didn't react positively this morning and were down.

:(

[Barack_America]

24. The markets wanted free tax-payer money, no strings attached...

...and they didn't get it.

Forgive me if I can't weep for them.

Investors will be back once they finish throwing their little temper tantrum.

ETA: Isn't Krugman often in the minority? And aren't his ideas usually right (even if they do often lack political feasibility)?

[Beacool]

25. I have absolute respect for Krugman.

But, I'm not sure whether they all know what will really work or are they are just making educated guesses at this point.

[MarjorieG]

26. Not specific, true, but reflecting Wall St, which doesn't want any accountability.

The global reprecussions great to whatever we do, and populist impulse and righteous anger not always effective here.

Geithner was not as pro Corporate as they'd have liked and papers mimic market's displeasure, which may be a good thing. He is making efforts to determine good from bad banks.

Biggest problem is that his manner reflects the large problem not having a sure, fast fix up front. He has gone through many remedies in theory, and that is his value, being able to think it through before we leap badly. He gave a price tag people didn't like, but the media and Congress somehow couldn't prevent this?