Ben Bernanke is a Capitalist, Tim Geithner Remains Quiet
Ben Bernanke actually has a clue folks. Can’t say as much for Turbo Tax Tim Geithner. He’s not been a lot of help to the markets. The media blessed great one, Larry Summers, doesn’t seem all that special either. Word has it he was sleeping during Obama’s finance summit. Literally.
Bernanke during the last two days of Congressional testimony has been more upbeat and positive than any mouth piece in the Obama administration. He has completely squashed the idea of bank nationalization. He’s not for it. At all. FINALLY someone in D.C. is acting like they believe in caspitalism. Finally someone is ready to charge of the situation up there. Who would have thought it would be Bernanke. I didn’t, but he seems to be the one ready and willing to restore faith in our system.
The bank stress test from the Treasury is just ridiculous. Granted the plan is still being fleshed out, but it is basically just something to calm the markets and the American people. It’s a confidence boost to make you think the Treasury has a plan. They don’t. The banks are actively failing. Why in the world do they need a stress test? They are already stressed. We know they are in bad shape. They are simply buying time while the banks essentially repair themselves. That’s a cynical view but it it’s just the way it is.
The flip side is that for the banks that pass the stress test they should get a nice lift, a good shot of momentum, to lift them in the market. This will definitely help with the public perception.
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