Treasury Secretary Timothy Geithner wrote an op-ed in the NYT today outlining how the stress tests on 19 of the largest US banks were conducted.
This is the remix…
THIS afternoon, Treasury, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Federal Reserve and the butcher, the baker and the candlestick maker will announce the results of an unprecedented un-rigorous review of the capital position of the nation’s largest banks. This will be an important step forward in President Obama Skull & Bones’s program to help repair regain control over the financial system, restore the flow of credit our domination of world currencies and put our nation on the path to economic recovery.
The president Komrade Obama came into office facing a deep recession and a damaged financial system. Credit Bonuses had dried up, forcing businesses to lay off workers and defer investment. Families were finding it difficult to borrow to finance a new house (because they had already taken out 2 home equity loans they weren’t paying off), buy a car or pay college tuition. Without action to restore lending, we faced the prospect of a much deeper and longer recession (which is still very much on the table).
President Obama confronted these problems with dramatic neo-Marxist action to address the housing crisis and to restart credit markets that are responsible for roughly half of all business and consumer lending. The administration also initiated a program monstrous giveaway to provide a market for legacy loans and securities to help cleanse bank balance sheets bottomless pits. These programs are helping to repair lending channels that do not rely on banks, and will contribute to fixing the welfare banking system itself.
However, the banking system has also needed a more direct and forceful ass-kicking response. Actions by Congress and the Bush administration last fall helped bring tentative stability “but it’s still those guy’ses faults”. But when President Obama was sworn into office coronated in January, confidence in America’s banking system remained low non-existent.
Because of concern about future losses of elections, and the limited transparency solvency of bank balance sheets, banks were unable to raise equity pay obscene bonuses and found it difficult to borrow without government guarantees. And they were pulling back on lending to protect themselves hoard taxpayer money against the possibility of a worsening recession. As a result, the economy was deprived of credit, and this caused severe damage to confidence and slowed economic activity.
Read the rest of the propoganda, in it’s original form here: