Never ask a tax cheat to be your treasury secretary

by Rocket Finance

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The twists and turns of our financial crisis are numerous and complicated. The blame cannot be lay entirely at the feet of any one entity or individual. However, just for today, let us consider the role played by our new Secretary of the Treasury, one Timothy Geithner:

Mr. Geithner earned a B.A. in Asian Studies and a M.A. in international finance and Asian studies. Surprisingly, he does not possess an M.B.A. Mr. Geithner has had some well-documented tax issues, however, as Treasury Secretary, he hopes to track down international tax dodgers.

Takes one to know one.

In 1999, the Clinton administration embraced policies that encouraged Fannie Mae and Freddie Mac to back sub-prime mortgages – with disastrous results. AIG and other financial institutions also invested heavily in that particular market. At this time, Mr. Geithner was overseeing the financial collapse of the Pacific Rim.

During the 1990’s, Tim Geithner worked for the International Monetary Fund. Let me summarize the Sidney Morning Herald:

Tim Geithner is a gigantic fool, the IMF the gun that can’t shoot straight, Alan Greenspan a bungler. The big US banks were run by the greedy and the hopeless, the Australian banks by counter-hopping clerks. It’s a world of many villains.

I guess it is only fitting that he later cheated on the salary paid to him by the IMF.

So now we come to March 2009 and the Obama administration is outraged at the bonuses being handed out to AIG executives with TARP (bailout) money:

Noting that AIG has “received substantial sums” of federal aid from the federal government, Obama said he has asked Treasury Secretary Timothy Geithner “to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole.”

The only problem is that President Obama didn’t realize that it was his very own Treasury Secretary who wrote the AIG bailout in the first place:

Behind the scenes, Mr. Geithner was the point person for weeks of sleep-deprived Bailout Weekends. It was Mr. Geithner, not Mr. Paulson, for example, who put together the original rescue plan for the American International Group.

So there you have it. The president wants Mr. Geithner to take taxpayer money away from taxpayers who were contractually obligated to receive certain compensations so that the government could then give the taxpayer money back to other taxpayers.

Of course the money doesn’t really exist anyway . . . but who’s keeping track?

The point is this: our government should have never encouraged financial institutions to lend money to sub-prime individuals and our government should have never bailed out failing bank and our government should not have any say in how a particular company compensates employees. Under the constitution of this country, as originally intended, Timothy Geithner would have never had the power to affect the lives of so many Americans.

Our founding fathers feared a corrupt government far more than they feared an unethical, greedy capitalist, so they limited the power of our federal government. They wanted to keep the federal government in a box. While it is true that people suffer from bad businesses, the reality is that far more people suffer from bad governments. We are far better off when we trust the citizens of this country to solve our problems.

Instead, it seems that we would rather trust a tax cheat.

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Recent update: Congress is trying to clean up this mess. Kind of like trying to clean up an oil spill with Crisco.

Cartoon Credit.

  1. 9 Responses to “Never ask a tax cheat to be your treasury secretary”

  2. By Trevor @ Financial Nut on Mar 18, 2009 | Reply

    With guys like that in the Whitehouse, it’s fair to be upset. I’m not happy with a number of things going on right, especially a dude that doesn’t pay his taxes watching over our money.

    🙁

  3. By Jeandsay Bishith on Mar 24, 2009 | Reply

    barack is a soft tyranny plain and simple

  4. By Odnal on Mar 24, 2009 | Reply

    The reason that the AIG bonuses are getting so much media attention is GREED, pure and simple. People are outraged because somebody else is getting more money than they are.

    The reality is that $165 million of bonuses is pretty insignificant.

  5. By Odnal on Mar 24, 2009 | Reply

    See http://xkcd.com/558/ for a good example of the media (mis)representation

  6. By rocketc on Mar 24, 2009 | Reply

    Good link, Odnal. The mob is being incited.

  7. By fathersez on Mar 30, 2009 | Reply

    I love your statement on “the founding fathers fearing a corrupt Government….”.

    We have a similar situation here, a Constitution put into place with the demarcation of powers between the executive, judiciary and the legislature. But the executive managed to change the constitution enough times. Now we are being royally s#$%ted almost on a daily basis.

    PS: I love your picture.

  8. By rocketc on Mar 31, 2009 | Reply

    Thanks, fathersez.

  9. By rocketc on Mar 31, 2009 | Reply

    This why it is critical that citizens hold the government accountable to the letter of the Constitution and the letter of the law.

    Unfortunately, our document is almost irrelevant now and we are headed for tyranny.

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