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Peter principle

[I'm de-frontpaging this to defer to MsExPat -- lambert]

Times:

An examination of Mr. Geithner’s five years as president of the New York Fed, an era of unbridled and ultimately disastrous risk-taking by the financial industry, shows that he forged unusually close relationships with executives of Wall Street’s giant financial institutions.

Of course, we all have different ways of defining "disaster," don't we?

Last June, with a financial hurricane gathering force, Treasury Secretary Henry M. Paulson Jr. convened the nation’s economic stewards for a brainstorming session. What emergency powers might the government want at its disposal to confront the crisis? he asked.

Timothy F. Geithner, who as president of the New York Federal Reserve Bank oversaw many of the nation’s most powerful financial institutions, stunned the group with the audacity of his answer. He proposed asking Congress to give the president broad power to guarantee all the debt in the banking system, according to two participants, including Michele Davis, then an assistant Treasury secretary.

The proposal quickly died amid protests that it was politically untenable because it could put taxpayers on the hook for trillions of dollars.

“People thought, ‘Wow, that’s kind of out there,’ ” said John C. Dugan, the comptroller of the currency, who heard about the idea afterward. Mr. Geithner says, “I don’t remember a serious discussion on that proposal then.”

But in the 10 months since then, the oligarchy government [that is, the executive branch, along with the unelected Fed] has in many ways embraced his blue-sky prescription. Step by step, through an array of new programs, the Federal Reserve and Treasury have assumed an unprecedented role in the banking system, using unprecedented amounts of taxpayer money, to try to save the nation’s financiers from their own mistakes.

See, if you're one of Timmy's golfing buddies, you might think that putting the taxpayers on the hook for two trillion dollars of your gambling debts, with no transparency and no accountability-- while you keep your job, make just as much money as before, and get to keep running the country -- doesn't look like "disaster" at all. In fact, it might look a lot like success!

See? It's all a matter of perspective. Everyone has their own special delusion...

NOTE Timmy's daily schedule. Why, in the name of sweet suffering Jeebus, didn't the Times make this document searchable on the web, instead of just scanning it??

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