Jack Lew tapped to replace Tim Geithner as Treasury secretary

January 9, 2013 by · Leave a Comment
Filed under: Industry News 

I don’t know too much about Jack Lew, I know he has been a Washington insider for decades.  At least from what has been reported, he is not as much of a Wall Street guy like other names that were floated by the media, example in Jamie Dimon. 

He will still need to go through Senate confirmation so who knows, they could block his confirmation and we could still get another Wall Street pedigreed Secretary.  He was part of the Clinton administration, and it being touting as playing a pivotal roles in the engineering of the balance budget during that presidency.  

I am still not convinced, Obama brought in Paul Volcker in the initial aftermath of our current financial crisis and he was quickly marginalized so this may be another dog & pony show.  We need to get serious about our tax code and spending or at some point people will lose confidence in our ability the repay our debts in kind and that will cause a serious dislocation in our market and large cracks in the American foundation. 

Politico – President Barack Obama will nominate White House chief of staff Jack Lew for Treasury secretary as soon as Thursday, according to a person briefed on the matter. In doing so, Obama is throwing Lew straight into the middle of an increasingly nasty budget war, the likes of which Washington hasn’t seen since the mid-1990s.

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Overview of 2009 U.S. bank rescue plan (Bank Bailout)

February 10, 2009 by · Leave a Comment
Filed under: Economic News 

First off, the market is tanking pretty bad.  Not a vote of confidence at any stretch.  At the time of this writing the market is down 4.6%, ouch.  Basically the plan is used to buy toxic assets and use money to help private investors purchase these assets.  

Outside of the mortgage-backed securities, I am not sure what investors are going to buy?  I don’t think I would purchase debt insurance contracts (CDS) in this market, who would want that risk when so many other indicators are pointing towards a global depression.   Plus I still stand by my prediction that the white elephant in the room is the fact that many of these banks are carrying insurance contracts on their balance-sheet (somewhere) that have already gone bust so they are not a real asset, but a liability.  Here is the full overview:

2009 Bank Bailout Overview:

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