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Elizabeth Warren Top TARP Cop Reading “Goodnight Moon” [UPDATE]

By John Batchelor on April 9, 2009 at 10:55 PM in American Consumers, Banking Institutions, Current Affairs, Economic Stimulus, Economy, International Monetary Fund, Tim Geithner, treasury department

Editor’s UPDATE: Below the fold, there’s a pithy, explanatory description of what the T.A.R.P. oversight panel (Chair Elizabeth Warren et al.) concluded in its worrisome report on Treasury’s handling (or not) of the economy’s downturn.

John Batchelor: From my blog. Don’t miss Larry Johnson on my show Sunday nights. Watch for NoQuarter’s promo on Sundays.

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“…the newly advanced PPIP… bottom line, Treasury’s efforts today could be enough…. in the past six months, Treasury has spent $590 billion from TARP… the evidence of success or failure is mixed… It is possible that Treasury’s approach fails to address the depths of the current crisis… alternate approaches… the worst financial crisis it has faced since the Great Depression…” Goodnight Treasury. Goodnight dollar. Goodnight capitalism. Goodnight America. Goodnight moon.

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UPDATE: It’s remarkable that the following comes from the very liberal, Soros-funded Think Progress, in its “Under The Radar” section:

ECONOMY — TARP OVERSIGHT PANEL: TREASURY MAY NOT BE ACKNOWLEDGING THE DOWNTURN’S ‘DEPTH’:

According to new forecasts set to be released by the International Monetary Fund (IMF), “toxic debts racked up by banks and insurers could spiral to $4 trillion.” With that harrowing number hanging overhead, the Troubled Asset Relief Program’s Congressional Oversight Panel released its six-month report today. The panel, chaired by Harvard Law School professor Elizabeth Warren, questioned Treasury Secretary Timothy Geithner’s assumption that the toxic assets clogging the banks are merely economically depressed, noting that Treasury’s response “fails to acknowledge the depth of the current downturn.”

“If the economic crisis is deeper than anticipated, it is possible that Treasury will need to take very different actions in order to restore financial stability,” wrote the panel. The Warren panel also noted that
Treasury “has not explained its assumption that the proper values for these assets are their book values.” As estimates regarding the number of toxic assets climb higher and higher — with Nouriel Roubini claiming there are $3.6 trillion worth — it is becoming clearer just how much depends on Treasury finding a workable plan for cleaning up the banks. As IMF managing director Dominique Strauss-Kahn said, “[Y]ou never recover before the cleaning up of the banking sector has been done.” And right now, Geithner’s clean up is premised on an assumption with which more and more people are taking issue.

diane

http://www.poorrichardsalmanac.biz
Meanwhile, Obama intends to fast tract “amnesty” even though 50% of new citizens are latino.
Is this where the tarp money went? to fund illegal immigration?
Patience

Maybe it’s Soros’ wish and hope that the financial crisis is worse than Treasury presumes. He may be “betting” on it, IYKWIM.
Peggy Sue

Elizabeth Warren is the one clear voice in the ongoing babel. You do not have to be an economist to understand her short, direct explanation.

She also said about ten days ago that she and her watchdog panel were “not” a priority for the Treasury Department. She can’t buy a cup of coffee from the treasury folks. Obviously, they [Geithner and his advisory team, whomever they may be] think they have “all” the answers.

Notice that Geithner has chosen Door #3, the Japan solution. Welcome to the Lost Decade. Or perhaps Lost Century.

God help us!
politicalidentitycrisis

Well, she’s just not hopey changey enough. Maybe if she brings in some celebrity to do a concert first and rides in on a unicorn, they might listen to what she has to say, but it better be all sunshine and rainbows and puppies!
AX10

Celebrities of the Hollywood sort were all for Obama because of the way he talked. Oye!
jbjd

I have recommended remarks by Professor Warren before; I watched this video and, as Peggy Sue pointed out, understood everything she said. I also assume that, since she is so obviously competent and, a women, her fiscal policy recommendations will receive short shrift in the BO Administration.
http://www.sonicninjakitty.wordpress.com Sonic Ninja Kitty

She’s basically saying all that taxpayer money is down the toilet and we have to do what they should have done in the first place (either option 1 or 2).

Let’s all remember how Obama claimed it was HIS outline they were following for TARP. Idiot. We are so screwed.