Val
Lv 6
Val asked in Politics & GovernmentPolitics · 1 decade ago

Is Tim Geithner (Secretary of the Treasury) the cause of the world recession?

According to a past Prime Minister of Australia (Paul Keating) that knows firsthand of Geithners destruction of the South Asian economy.

Keating went on to argue that, by frightening the Chinese into building their vast $US2 trillion foreign reserves, Geithner was responsible for the build-up of tremendous imbalance in the world financial system. This imbalance, in turn, according to Keating, contributed to the global financial crisis which has since devastated the world economy.

What conclusion do you draw?

http://www.smh.com.au/opinion/obamas-economic-savi...

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  • Anonymous
    1 decade ago
    Favorite Answer

    I'm afraid someone else beat him to it.

    Arthur Levitt, Jr. was the longest serving head of the SEC. Do a Google search on him, see what pops up.

    He was appointed by Clinton in 1993 and again in 1998. He left in 2001, so he covered the entire Clinton administration.

    Levitt gave Madoff a free pass because they were both members of the Harmonie Club, a social club for the ultra wealthy in NYC.

    Madoff was first reported to the SEC in 1992:

    http://www.guardian.co.uk/business/2009/sep/02/ber...

    Report: Regulator was tipped off about Madoff fraud as early as 1992

    "a suspicion of trouble at Madoff Investment Securities arose as early as 1992 when customers of Avellino & Bienes, a fund that invested all its money with Madoff, complained about documents making a seemingly impossible promise of "100%" safe investments. Although the SEC shut down Avellino & Bienes, the agency only made a "brief and very limited" examination of Madoff."

    Avellino & Bienes was shut down by the SEC in 1993, the year Levitt took charge.

    Levitt also gave a special exemption to Enron, exempting it from accounting rules. This special exemption led directly to the Enron scam and the subsequent meltdown of the company, which took down a major chunk of the economy with it. It also led to the discovery of similar fraud at many other companies, fraud that got its start in the Clinton years.

    If I was going to pick one individual who was most responsible for the rampant fraud of the Clinton years, it would have to be Art Levitt.

    Also recall that the 1999 Gramm-Leach-Bliley banking deregulation act passed with overwhelming majorities of both parties in both houses of Congress, and signed eagerly into law by Bill Clinton. The 2008 meltdown was attributed directly to this law, and the generally reckless deregulatoion and lack of regulation of the Clinton years.

    http://video.pbs.org/video/1302794657

    Frontline: The Warning - the story of Brooksley Born, the Clinton appointee who was shunned by the Clinton admin for advocating regulation of derivatives.

    Clinton also signed NAFTA into law and opened free trade with China.

    As someone else mentioned, Fannie Mae and Freddie Mac ran amok, and Republican calls for stronger regulation were blocked by influential Democrats. Rahm Emmanuel was on the board of directors of Freddie Mac at this time. Execs were paid high retention bonuses to "keep the best talent," and now these lenders have swallowed up a $5 TRILLION bailout due to their mismanagement. I guess they weren't so talented after all. Can we get those exec bonuses back now, do you suppose? No, I thought not.

    http://www.youtube.com/watch?v=_MGT_cSi7Rs

    Youtube thumbnail

    Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis

  • Anonymous
    1 decade ago

    No, Fannie Mae & Freddie Mac caused this problem and they are Democrat Party gov't run organizations. The Republican Party tried on 12 separate occasions to reign in Fannie & Freddie and the Democrat Party blocked them on every occasion. Democrat Barney Frank's long time boyfriend is a head at Fannie, Democrat Anchor Man David Gregory's wife Beth Wilkinson is a top lawyer at Fannie, Democrat Obama's advisor was Reigns who ran Fannie into the ground, Democrat Party member & President Barrack Obama received more money from Fannie & Freddie during his time in office than any other Politician & Democrat Chris Dodd received more money during the entire existance of Fannie & Freddie in contributions than any other politician. The Democrat Party has been in charge of the House & Senate for the last 4 years and that's why we have this recession. Democrat Obama w/ Tax Cheats like Geithner being in office for the last 2 years have certainly made this far worse.

  • Anonymous
    1 decade ago

    The imbalance probably did not help matters with the domino effect, but the fact is that banks playing fast and loose with risky investments and impossible-to-understand transactions that still somehow put money in their pockets is the true culprit. The things banks were doing would be considered fraud if a regular person did it.

  • 1 decade ago

    the current crisis? no. that would be everyone who supported Fannie Mae/Freddie Mac even after Bush begged the Congress to do something about the impending crash.

    however, removing the gold standard allowed for all the nonsense.

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  • 1 decade ago

    While some believe (and I'm inclined to agree with them) that Geithner was part of the problem (in the early 2000s), he was certainly only a small part. There were many players, such as the gamblers at AIG and other financial firms, those who've shipped American jobs off-shore, those who passed laws deregulating financial markets. It's a long list of names.

    No one man caused what some were inclined to call the Second Republican Great Depression.

  • 1 decade ago

    The policy to lend money to risky borrowers (see Bill Clinton & Sub-prime loans) caused the recession.

  • Oreo
    Lv 7
    1 decade ago

    I would believe that! Each time I seen him before a Senate Hearing they treat him with kitten gloves even though he ducks their questions. He is a Wall Streeter and was in there when it collapsed not doing his job as neither was Paulson.

  • No one person made the difference in causing a world wide recession....

  • Anonymous
    1 decade ago

    He is certainly one amongst many bad actors in this horror show.

  • Anonymous
    1 decade ago

    It's Obama's fault.

    Source(s): It's always Obama's fault.
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