Stiglitz sees risks of ‘big bumps ahead for US economy’ & sustained UE in double digits, suggests a need for stimulus round deux

Our previous posts on Stiglitz here his answer is to spend more, OF COURSE IT IS! But Team TOTUS will hang on every word he says so it is good to know what he is saying.

Joe is talking about the UE rate again today see here.. The headline from that link is he sees ‘big bumps ahead for US economy..embed is disabled 😦

Here he is last week:

Bloomberg:

Exclusive Interview with Columbia University Professor Joseph Stiglitz (Bloomberg News)

October 5, 2009. Tags: , , , , , , , . Economy, Finance, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. 1 comment.

Update: US Credit Card Defaults hit record high; Stiglitz: No job growth for at least 2 years & Existing home sales and prices drop…

Update: More happy, happy, joy joy. As we said eons ago, okay in June, lol, we could not understand why the stress test results allowed CapitalOne to not raise reserves against credit card defaults. Well guess what? That ‘bottom’ they called in July, is broken, and we are at another new record and climbing on defaults:

The U.S. credit card charge-off rate rose to a record high in August, as more Americans lost their jobs, Moody’s Investors Service said on Wednesday, in another sign consumers remain under stress.The Moody’s credit card charge-off index — which measures credit card loans that banks do not expect to be repaid — rose to 11.49 percent in August from 10.52 percent in July.

The index resumed an upward trend after declining in July for the first time in almost a year, vanishing hopes of stabilization in the industry after record high credit losses…

Good news huh?! Recall this is Joseph Nobel Prize Stiglitz, another of the SOOPERGENIUSES who supported Obama.

In other happy happy talk, existing home sales dropped (which was a SHOCK to the talking heads but not to any average American, we know you cannot buy a home without a job, hello!!) and prices fell another 12%…

And that wave of foreclosures is coming to boost inventory...

(…)Ivy Zelman, chief executive of Zelman & Associates, a research firm based in Cleveland, believes three million to four million foreclosed homes will be put up for sale in the next few years. The question is whether the flow of these homes onto the market will resemble “a fire hose or a garden hose or a drip,” she says.

Analysts who track the shadow market have focused primarily on the gap between the number of seriously delinquent loans and the number of foreclosed homes for sale by mortgage companies. A loan is considered seriously delinquent, which typically means it is headed to foreclosure, if it is 90 days or more past due.

As of July, mortgage companies hadn’t begun the foreclosure process on 1.2 million loans that were at least 90 days past due, according to estimates prepared for The Wall Street Journal by LPS Applied Analytics, which collects and analyzes mortgage data. An additional 1.5 million seriously delinquent loans were somewhere in the foreclosure process, though the lender hadn’t yet acquired the property. The figures don’t include home-equity loans and other second mortgages

Moreover, there were 217,000 loans in July where the borrower hadn’t made a payment in at least a year but the lender hadn’t begun the foreclosure process. In other words, 17% of home mortgages that are at least 12 months overdue aren’t in foreclosure, up from 8% a year earlier….

Finally the economists have caught on to the OBVIOUS fact -no job no house payment- and Mark Zandi of Moody’s (the Dems fave to bring to the Hill and talk up stimulus spending) has chimed in:

The housing recovery remains weak and could take a turn for the worse if more Americans lose their jobs, analysts say.

Well no shxt Sherlocks!! Hey I have been saying this for over a year, where’s my Nobel Prize, huh??

“The market’s incredibly fragile,” says Mark Zandi, chief economist at Moodys. “As long as job losses are rising, the housing market is at risk of continuing along a decline. Any recent stability would be in danger.”The unexpected drop in existing home sales for August was the latest sign of just how tentative the recent signs of recovery are.

More NO SHXT analysis:

What has helped housing in recent months, analysts say, has been the first time homebuyer tax credit of $8,000. But that is scheduled to end on November 30th and should be extended, says Walter Maloney, spokesman for the National Association of Realtors.”The tax credit has really been a catalyst,” Walter Maloney says. “We’ve seen a sustained gain in sales in recent months because of it. We need to extend it for all home buyers–and even to commercial real estate.”

Again, MiM has been saying this FOR AGES! That the home buyer tax credit that ends in November, and Clunkers would give 3Q GDP boost and then a drop off when consumers who still dont have work, continue to well NOT SPEND WHAT THEY DONT HAVE. Gee maybe that’s why the government doesn’t undertand it, becuase they DO SPEND WHAT THEY DONT HAVE!

Well gee now that they are on board with the REALITIES we have been talking about on Main St for months now, what do they plan to do to fix it? Give people more government money of course!

Wisconsin School of Business professors produced a recommendation based on their recent study to the Obama administration regarding the grave condition of foreclosures across America…

Continues after the break:

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September 24, 2009. Tags: , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. 3 comments.

Stiglitz agrees with MiM ‘W’ economic forecast…

Hey let’s put on some Ritz MiM style, the grand chief poohbah high muckety mucks of the ivy league intelligentsia Feldstein, Stiglitz, Krugman, Gross you know their names…and they all loved them some Obama…Well now Stiglitz is the latest to go on record echoing MiM’s position which we took here on the blog lo these many moons ago…the flat L leading to the double dip….

CNBC:

Nobel laureate economist Joseph Stiglitz on Thursday gave a gloomy assessment of a rebound in the U.S. economy, saying he does not see a resurgence in the strong consumer spending that has been a key driver of growth.

poohbah…But Stiglitz said the U.S. economy faces the possibility of low economic growth over a long-term period or the possibility of a “double-dip” recession whereby a recovery is not sustained.

It is not possible to predict whether we have a malaise or a W (shaped growth pattern). But there is a significant chance of a W,” he said. “It is not as if the second dip is going to be as bad as the first dip,” he said. Instead, it could mean the economy rotates through a process of low growth followed by contraction.

“We are not seeing a recovery of sustained consumption,” in the United States, said Stiglitz, who said he has been consulted on an informal basis by the Obama Administration to talk about the major economic issues….

Gee I wonder why, ‘we are not seeing a recovery of SUSTAINED CONSUMPTION’?? Could it be because THE FRAKKIN IDIOTS IN DC ARE SCARING THE EVER LOVIN CRXP OUT OF WE CONSUMERS WITH THEIR HARE BRAINED SPENDING AND TAX PLANS??!! HMMMMNNN? Could be rabbit, could be!!! Is TOTUS doing bugs? Would I add this gigantic spending plan if the economy was about to collapse in a second leg down? You might TOTUS you might!

Have said it before, will say it again- What a bunch of maroons. For a group of the ‘Smartest People Evah’ they are awfully dense about how their ‘visionary changes’ impact real world consumers. Their pie in the sky ideas of de-industrializing the US and slowing population growth and greening everything and the greater good, cap and trade, change housing codes nationwide, pay cash for clunkers, take over car companies, then health care, they are really SHOCKED that 21 Century Americans do not want to go all ‘neo socialist Luddite’ with them…

wall_st_bear_small

They can claim anything they want, but they pixxed away 800 billion in ways that do not help the consumer feel safe and spend, have jobs and spend, pay off some debt and spend. There is no THERE there in that spendulus. All it did was ADD to consumers low expectations and high deficit concerns. The S & P financials are headed for a second crash IMO, commercial RE is about to hit the FDIC in a wave of bank failures and the end of 2010-11 will see a tripling of the current residential foreclosure wave as we have discussed here before.

They are SOL in the 2010 elections, they simply don’t have the money to fix what they have done with the spent bullets of the spendulus and TARP bazooka, they are out of ammo, the FED is making noises that they are split on continued quantitative easing and MBS purchases. Bill Gross at PIMCO says they will have to stay loose and keep buying to keep rates low or send housing off the second cliff. This is precisely why Krugman was suddenly pro giant deficit and Gross is making noises about the end of stimulus being a problem.

News flash geniuses Americans will not support ANY MORE GIANT SPENDULUS bills. That ship sailed baby, and sunk. It was overloaded with ‘interest group’ payoffs…I heard an analyst on Caterpillar CAT today talking about how the spendulus was less than 3% infrastructure and CAT will not have a bump in 2010. Remember TOTUS in Elkhart and talking with CAT workers? How awful. And now Pete Stark D-outoftouch is talking about laying a tax on all Wall St stock transactions to pay for billions in what? You guessed it INFRASTRUCTURE. Fuggedaboudit.

Treasury is out talking up additional mortgage help for homeowners as they see all this coming, and yet in the face of all this Team TOTUS is STILL going to attempt a 1 trillion dollar health care bill? The Administration needs to find religion and go moderate or 2/3 of Congress can go home in 2010…

Young Frankenstein courtesy of cristiancd

Bugs Bunny courtesy of chrispdx

September 3, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Healthcare, Housing, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. 3 comments.

Video Update: Market Mover Friday: Larry ‘the Ego’ Summers Speaks …is Stiglitz the reason we still have no ‘illiquid assets’ plan?

Larry does the BEGATS from The Bible…

The Ego takes to the lecturn at the Brooking Institute today...(Safe for Larry to speak without overwhelming Geithner, since Tiimmeh is in Europe trying to get the G20 to drink the kool aid, for their part the Europeans have already indicated they are behind the idea of expanding the IMF balance sheet, but they absolutely will not sign on to global stimulus spending)

At 10:30 a.m. EDT, White House economics adviser Larry Summers will deliver a briefing at the Brookings Institute in Washington DC.

lOne Question, WHERE THE HELL IS THE FINANCIAL SYSTEM PLAN TO DEAL WITH THE BAD PAPER?!?!

WOTS is the bad paper plan is not coming together because most of Team Obama was nurtured by Stiglitz’  and is following his lead, while Summers wants to go another way…

I would chime in, but as Summers’ has said I am a woman and cannot do math..(what a jackaxx he is)

Bloomberg:

A plan Obama was considering to buy illiquid assets on banks’ balance sheets amounted to swapping taxpayers’ “cash for trash,” Stiglitz, 66, said in January interviews at the World Economic Forum in Davos, Switzerland. “I’m hopefully shaping some of the debate and some of the policies and framing the discussion.”

But why is everyone listening to Stiglitz and not Summers’?

Like fellow Nobel laureate Paul Krugman, who writes a column for the New York Times, Stiglitz has his own forum, contributing regularly to Vanity Fair magazine. His articles, with titles including “Capitalist Fools,” are spread through the Internet via sites such as DemocraticUnderground.com and DailyKos.com.

Stiglitz’s work is cited in economic papers by more people than that of any of his peers, according to a February ranking by Research Papers in Economics, an international database. Obama adviser Lawrence Summers is 11th on the list and Federal Reserve Chairman Ben S. Bernanke 34th.

While Stiglitz’s long-held views on the drawbacks of unfettered markets are proving prophetic in the global recession, his outspokenness excludes him from government, said David Ellerman, who worked with the economist at the World Bank in the 1990s.

So what does Summers have that Stiglitz doesn’t?

“If you’re going to function well in a big bureaucracy, you’ve got to have a sort of self-control that Joe doesn’t have,” said Ellerman, a visiting scholar at the University of California, Riverside

OMG are you KIDDING ME?? Summers has self control and Stiglitz doesn’t? My gawd imagine what a piece of work Stiglitz is if he makes Summers look controlled..Jeebus!

Stiglitz also mentored several members of Obama’s economic team, including budget director Peter Orszag, 40, and Jason Furman, 38, deputy director of the National Economic Council. Still, Stiglitz is critical of how the president plans to rescue the economy and questions his appointment of Summers as his top economic adviser.

It’s “a real concern” that people such as Summers, “who have been openly on the side of deregulation,” are back in positions of power, said Stiglitz. The presidential adviser helped secure passage of the 1999 Gramm-Leach-Bliley Act, which repealed longstanding banking regulations.

A real smack down is coming..

When Stiglitz last worked in Washington, as chief economist at the World Bank, he clashed with Summers at Treasury and with the lender’s president, James Wolfensohn, by criticizing International Monetary Fund policies. Stiglitz said the IMF was hurting poor countries by demanding they cut budgets, raise interest rates and open capital markets.

When Stiglitz resigned from the bank in early 2000, his staff drew up a mock list of reasons for his departure. At the top: “Had Just Seen One Too Many Hot Summers in Washington.” Another entry: “To Find a Vaccine for Foot-in-Mouth Disease.” “Remaining silent when people are pursuing wrong ideas would have been a form of complicity,” the New York Times quoted Stiglitz as saying of his departure. “Rather than muzzle myself, or be muzzled, I decided to leave,” he said, according to the Times.

Oh that’s classy..

At the World Bank, Stiglitz repeatedly criticized IMF handling of the financial crisis that swept Asia in the late 1990s. He claimed austerity measures the fund demanded from nations looking for help risked pushing them into severe recessions. Stiglitz also questioned the IMF’s motives. “I worry a little bit about organizations whose function is to deal with crises,” he said in September 1999. “What are their incentives?”

Soon after leaving the bank, Stiglitz wrote in The New Republic magazine that fund staffers were “third-rank students from first-rate universities.” “There was probably nothing worse he could have said about them,” said Dean Baker, co-director of the Center for Economic Policy Research in Washington. Stiglitz’s bestselling 2002 book “Globalization and Its Discontents,” (W.W. Norton & Company, 304 pages, $16.95) denounced World Bank and IMF policies, along with the way trade liberalization was being pursued by Washington officials.

His writings and criticism of the IMF prompted an open letter from Kenneth Rogoff, then research director at the fund. “Joe, as an academic, you are a towering genius,” Rogoff wrote. “As a policymaker, however, you were just a bit less impressive.”

Guess Stiglitz won’t be helping Timmeh get the IMF in line BWAAAHAAAA, wonder what he thinks of our plan to expand IMF power and balance sheet to save Eastern Europe? Wow the fireworks should be grand, If only Team Obama weren’t listening to someone not even in the Administration over their own pick..good grief…

March 13, 2009. Tags: , , , , , , , , , , , , , . Cabinet, Economy, Finance, Obama Administration, Politics, Uncategorized, Wall St. 3 comments.

The Next Shoe Drops ~ The Fed launches QE2, departure at 2:15pm ET

Update : FOMC announces $600B targeted toward the ‘long end’ 5-6 yrs, if they do it all yr + the reinvestment of previous purchases per NYFRB they should hit 1 Trillion.

ElErian says it will backfire and lead to QE3, PIMCO seems pixxed.

Update 11:15am ET: Gold is getting absolutely hammered. Down $25 to $1331.70. Appears the street thinks the Fed will pull its punch and disappoint. You know what I say? Good time to buy!

Were I the Fed I would move big now before Rand Paul takes my money printing machine away. Of course I think we should end the Fed at this point, they are propping up TBTF balance sheets and killing the middle class.

_____________________________

QE2 is expected to depart the Federal Reserve steaming toward the TBTF balance sheets at a clip of $500B and further purchase announcements ‘as needed’ at 2:15 pm ET!

All Aboard for falling US Dollar and rising commodities!

I for one cannot WAIT for Ben Bernanke to face the righteous wrath of Senator Rand Paul on this monetizing and taking on worthless paper to bail out TBTF.Senator Paul will no doubt ask where Bernanke thinks he gets this authority and how it helps fulfill his dual mandate of price stability and full employment, which it does not.

Since the Dems were letting the middle class go down I say we all go down or not on our merits. Let the chips fall where they may, Damn the torpedoes! Full speed ahead! Let the TBTF frakkers fail~

As the guys on the street say, we need Potted Palms on the Trading Floor now that we are monetizing the debt a la Argentina pre collapse~

And the TERRIBLE AWFUL economic data continues to roll in. What will Team Obama do now?

November 2, 2010. Tags: , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Updates: Bernie Sanders I-VT seeks to put hold on Bens renomination; Black Swan says he will shun public life if Ben reconfirmed; Mark Zandi agrees double dip for housing ahead; Flashback: Bernanke in Denial 2005-2007

Update 2: Breaking on CNBC via Politico Bernie Sanders I-VT trying to put hold on Bens renomination hearing tomorrow. But they seem to have the 60 votes they need. Also today Taleb, of the Black Swan said if Ben is reconfirmed he will leave public life, seriously:

Nassim Taleb, the author of “The Black Swan”, said he would retreat from public life if Federal Reserve Chairman Ben Bernanke gains a second term at the helm of the central bank.”What I am seeing and hearing on the news — the reappointment of Bernanke — is too hard for me to bear,” Taleb wrote on his blog on The Huffington Post.

“I am not blaming Bernanke (he doesn’t even know he doesn’t understand how things work or that the tools he uses are not empirical); it is the Senators appointing him who are totally irresponsible — as if we promoted every doctor who committed malpractice,” he wrote.Taleb wrote he will not take part in interviews in the press and will not go to the World Economic Forum in Davos in January.

“I need to withdraw as immediately as possible into the Platonic tranquility of my library, work on my next book, find solace in science and philosophy, and mull the next step,” he wrote, adding that “I will only (briefly) emerge from my hiatus when the publishers force me to do so upon the publication of the paperback edition of The Black Swan.”…

Update: Boy it is exhausting having these fancy pants academics and/or advisers to MAC and Obama come along and agree with MiM months after we take a position, like being Cassandra, it sucketh big time. Now I just heard Marty Feldstein agreeing on Kudlow too, lol. To be fair Feldstein came out on this in October...sure now that it’s COOL to say there is a double dip ALL the kids wanna do it!

Soon Orszag and Krugman will be the cheese, and we all know the cheese stands alone.

Mark Zandi of Moodys (who will be at the big job summit this week, and who is at every Nancy Pelosi jobs bill panel as well), the man who advised MAC and later the Congress on the stimulus, is now forecasting a second leg down in housing, a big one, the one we and others have been yammering on about for months.

Maybe now that one of the chosen few who get listened to (despite often being quite wrong) and whose ideas are often quite unsuccessful (see WSJ on Orszag and Stiglitz’  EPIC FAIL on the risk posed by FAN FRED that somehow gets them promoted and invited to all the summits and now they help design all our economic policy and even our healthcare system!!) is on board with the fact that housing is in imminent danger of collapsing under the continuing deterioration of employment and the failure of the mo mods. Well maybe now they will do the damned HOLC and get it done.

FDR did it, in out boom,. Buy the home loans from the banks,w e already own them in FAN FRED anyway, write down 20% everyone underwater, boom, done. Let homeowners pay it off via their taxes to the government. Give a payroll tax holiday. Stop the uber spending in areas that don’t help the underlying economy. The entire 78 billion directed to housing is still sitting there waiting to be paid out on permanent mods that aren’t happening.

The meltdown of the U.S. housing market is not over yet, and home prices will soon start trekking downward again as a flood of foreclosures looms, a well-known economist said Wednesday.

Home prices, as measured by the Standard & Poor’s/Case-Shiller U.S. National Home Price Index, will trough in the third quarter of 2010 after declining 38 percent, Zandi said. The index peaked in the second quarter of 2006 and hit a trough in the first quarter of 2009, a drop of about 32 percent. Home prices in many regions have been rising.That is because foreclosure sales fell over the summer and fall as mortgage servicers have tried to put stressed homeowners into the Home Affordable Modification Program and other modification plans, he said. “This lull in foreclosures sales has resulted in the price gains in the past few months,” he said.

“Foreclosure sales will increase, and home prices will resume their decline by early 2010 as mortgage servicers figure out who will not qualify for a modification,” he said.

Zandi said 7.5 million foreclosure sales will have taken place between 2006 and 2011. The majority of these sales, however, have not emerged yet, with 4.8 million foreclosure sales expected between 2009 and 2011….

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December 2, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

WH ‘Jobs Forum’ to feature ‘Green’ jobs sector leaders and labor, shockah!

Oh good gawd. Just CUT PAYROLL TAXES!! Just STOP THE HEALTH CARE BILL and Green regulations and taxing like crazy and small business will hire!

What will they do now, force Disney to paint their roofs white? Notice labor and green jobs are the focus here. And like 3 small business owners for good optics. Plus a bunch of academics, all of whom loved Obama in our primaries, like Stiglitz. Lord Help Us.

Politico:

WHITE HOUSE ANNOUNCES JOBS FORUM HEADLINERS — An aide says Thursday’s forum “will have approximately 130 attendees for the jobs forum including small business owners, experts from green jobs sector, business leaders, academics, mayors and representatives from nonprofits.”

CONFIRMED ATTENDEES INCLUDE: Eric Schmidt, Google (MiM here-GOOG-the company has a 30% profit margin and uses more carbon than anyone else on the list but he is Obama’s buddy so there ya go); Randall Stevenson, AT&T; Surya Mohapatra, Qwest ; Frederick Smith, Fed Ex; Brian Roberts, Comcast; Bob Iger, Disney; James McNerney, Boeing; Andrew Livens, Dow; Peter Solmssen, Siemens; Stephanie Burns, Dow Corning;

Phaedra Ellis Lamkins, Green for All; Reed Hundt, Coalition for the Green Bank; Larry Mishel, EPI; Alan Blinder, Princeton; Paul Krugman, Princeton; Joe Stiglitz, Columbia; Bob Greenstein, Center on Budget and Policy Priorities; and Jeffrey Sachs, Columbia.

PLUS SMALL BUSINESS OWNERS, including David Ickert, Air Tractor; Woody Hall, Diversapack; and Rose Wang, Binary Group.

AND Anna Burger, Change to Win; Leo Gerard, United Steel Workers; Joe Hansen, United Food and Commercial Workers; Randi Weingarten, AFT; Mayor Frank Cownie, Des Moines; Mayor Julian Castro, San Antonio; and Mayor Ed Pawlowski, Allentown, Pa.

November 30, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Labor Department, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. 1 comment.

WOW! Must See TV: Congressional JEC panel ripping Geithner apart: Rep Brady (R-TX) first to ask him to resign: MiM starts Obama economic team “shake-up” watch…

Vodpod videos no longer available.

If you look at UE Tim, the US is substantially WORSE off than it was when Obama took office to answer Timmehs whine….In fact someone should tell Tim, taking him at his word that he believes all measures, any measure of economic activity shows things are better since January, the measure of foreclosures and delinquencies has also more than doubled since Obama ‘took charge’:

Update: 12:10pm EST: uh oh. Kudlow says and Steve Liesman confirms, that Geithner is the most fiscally conservative member of Obamas economic advisers.  No wonder we are in a world of hurt! CNBC just ran the Brady Timmeh back n forth so it should come up in a video post shortly. will get it up right away.

Vodpod videos no longer available.

Update: 11:!5am OMG OMG Geithner just threw Seniors unda da bus!! He acknowledges to Brownback that yes the CBO score only works if Congress actually DOES the Medicare cuts and he insists they must and should and will DO THE CUTS. He says the costs have to be reduced, Brownback is saying but why cant we save Medicare? Good grief Geithner is a disaster, you aren’t supposed to tell Seniors they are getting thrown under there Timmeh, Obama will be displeased. Good ad for the GOP though!

WOW!! Excellent!!!! Live feed from CNBC here

I am starting Geithner Fired/Resigns Watch now, there will fer shure be some sort of ‘ Obama economic team shake-up’ to placate the rumblings as they get ready to ask for MORE STIMULUS…They can’t get away with it under Geithner IMO, looks like he is marked as sacrificial lamb, but the Progressives will be no happier with Larry Summers, lol….

By dequalss

Typos abound, getting ready while I do this- TImmeh is red and ranting and blaming Bush and Rep Brady made him acknowledge yes he was head of NY Fed when this collapse happened, and they are cross talking, Brady says the public has lost all confidence in Geithner and he reflects badly on his President, he says at some point Geithner has to take responsibility…ohhh excellent!!

Update: 11:04am EST: Rep. Burgess (R-TX) just said “I don;t think you should quit, you shouldn’t have been hired”. Is that a bus engine I hear idling??? This the Joint Economic Committee and is made up of both Senators and House members, double the fun!! Now Sen Brownback is going off about the health care plan and the Yuan peg…

(FD-MiM is a former AIG employee and shareholder and we have followed Geithner’s handling of the crisis as NY Fed-head closely for two years now, our posts on Geithner, Hank Paulson and AIG are legion. Our previous posts on Geithner and the troubled CITI bailout here and  here and here and here and here and even here ….)

Recall Sens DeMint and Isakson called on Geithner to resign last March. As did several members of the House.

This is in keeping with the report in TheHill this morning:

A Congressional Progressive Caucus (CPC) member said there’s “growing consensus” among liberals that Treasury Secretary Timothy Geithner should step down.

Rep. Peter DeFazio (D-Ore.) said Wednesday that he and other liberal House members are becoming increasingly tired of Obama administration economic policies that they say are too focused on maintaining the stability of Wall Street firms and largely ignore “Main Street.”“A growing consensus in the caucus [believe that Geithner should be removed],” DeFazio said on MSNBC this evening, adding that some lawmakers are “considering questions regarding him and other economic advisers.”

DeFazio said that lawmakers have not yet drafted a plan to remove Geithner. The lawmaker also took aim at top Obama economic adviser Larry Summers for furthering many of the same policies favored by Geithner.

“We need a new economic team,” said DeFazio…..

Hey man, live by the populist pitchforks, die by the populist pitchforks. Hard to put that class war genie back into the bottle and it was a HUGE mistake to embolden the populist rhetoric flame throwers in the House…

This drum beat is getting louder. Dodd thinks Geithner is a drag on his polling, lol, and Simmons, Dodd’s GOP opponent called for Geithner’s resignation already:

A former House Republican running for the Senate in Connecticut is calling for Treasury Secretary Timothy Geithner to be replaced over his handling of AIG’s bailout.

GOP candidate Rob Simmons reacted to a report by Neil Barofsky, the inspector general of the $700 billion bailout program, known as the Troubled Asset Relief Program (TARP).

Barofsky’s report criticized the Federal Reserve Bank of New York, which Geithner led during the bailout, for a series of missteps that Barofsky said ended up requiring the government to provide additional support to AIG.

“The report issued yesterday by the inspector general for the TARP program is a deeply troubling account of Secretary Geithner’s failed management of the AIG bailout in which he cost taxpayers $13 billion in unnecessary new debt,” said Simmons, who appears to be the only candidate or office-holder to call for Geithner’s replacement in response to the report.The federal government committed more than $180 billion to AIG, which was crippled by poor investments and trades in credit default swaps, a financial derivative.

Simmons also attacked his opponent, Senate Banking Committee Chairman Chris Dodd (D-Conn.), in the statement calling on Geithner to be replaced.

“The cozy relationships between the bailed-out financial companies and powerful politicians like Tim Geithner and Chris Dodd are exactly why Americans have lost trust in Washington, D.C., and why we need new leadership with the skills and integrity to clean up their mess and get our economy back on track.”…

More great housing news:

US mortgage delinquency rates and the percentage of loans that entered the foreclosure process jumped in the third quarter, with both reaching record highs, the Mortgage Bankers Association said on Thursday.

The percentage of loans on which foreclosure actions were started rose to 1.42 percent in the third quarter, an all-time high, up from 1.36 percent in the second quarter and 1.07 percent in the third quarter of 2008.

…The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009, up 40 basis points from 9.24 percent in the second quarter and up 265 basis points from 6.99 percent one year ago, the MBA said in its National Delinquency Survey. The delinquency rate broke the record set last quarter. The records are based on MBA data dating back to 1972.

The percentage of loans in the foreclosure process at the end of the third quarter was 4.47 percent, an increase of 17 basis points from 4.30 percent the second quarter of 2009 and 150 basis points from 2.97 percent one year ago.

The combined percentage of loans in foreclosure and at least one payment past due was 14.41 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey….

November 19, 2009. Tags: , , , , , , , , , , , , , , , , . CITI, citigroup, Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

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