Thursday, December 24, 2009
Treasury: TARP has generated at least $16B in profit so far
With Citigroup and Wells Fargo repaying a total of $45 billion in funds they received through the Troubled Asset Relief Program, the total amount repaid to the program now stands at $164 billion, according to the Treasury Department. By the end of 2010, total repayments should exceed $175 billion, the Treasury estimated. "Taxpayers have already received over $16 billion in profits from all TARP programs and that profit could be considerably higher as the Treasury sells additional warrants in the weeks ahead," the department said in a statement. MarketWatch (12/23) , Reuters (12/24) , The Wall Street Journal (12/24)
Sunday, November 1, 2009
Wall Street Must Change and the Debt Must Come Down
In a pre-taped exclusive interview with David Gregory for Meet the Press Treasury Secretary Timothy Geithner said two things must happen: Wall Street must change and the debt must come down. He also said that the growth that occurred was a positive sign but the recovery would take a while.
The indicators of a budding recovery were that GDP growth was at 3.5% for the third quarter and that job losses had slowed. The reason the growth will remain sluggish is because other indicators released were lower than previous months.
Mr. Geithner repeated his admonition (AFP) that the debt was too high and must come down. The debt would be addressed as the economy continues to grow and policies would be decided as conditions dictated. The other important statement was that Wall Street must change. The regulatory proposal caused Wall Street to balk.
The indicators of a budding recovery were that GDP growth was at 3.5% for the third quarter and that job losses had slowed. The reason the growth will remain sluggish is because other indicators released were lower than previous months.
Mr. Geithner repeated his admonition (AFP) that the debt was too high and must come down. The debt would be addressed as the economy continues to grow and policies would be decided as conditions dictated. The other important statement was that Wall Street must change. The regulatory proposal caused Wall Street to balk.
Monday, August 10, 2009
Three Cheers for the Obama Economic Team before Advancing to the Next Battle
We entered a severe economic downturn or “Great Recession”last September and have been losing higher numbers of jobs consistently, until recently, when the recent economic data has started to look better. While we are still losing far too many jobs the numbers are not increasing by as much or looking as bad as they once did. The stock market has had another streak of gains for the past four weeks.
When they entered office the Obama economic team, Treasury Secretary, Tim Geithner in particular weathered harsh criticisms from both the right and the left. They also resisted both the right-wing group that wanted to “let the banks fail” and the left-wing group that wanted to “nationalize the banks.” As a result of ignoring both of these groups they have proposed a balanced plan for regulatory reform.
However, there seem to still be rocky shoals ahead on the regulatory reform front. Today , according to The Washington Post, Sen. Mark Warner announced through an op-ed in the Financial Times that he cannot support the Treasury Department proposal because it does not actually create a strong single regulator. While the Treasury’s proposal simply merges the Office of the Comptroller of the Currency and the Office of Thrift Supervision to create the National Bank Supervisor. The “Nationalize the Banks” crowd will flock to Sen. Warner’s proposal because it appears tougher then the Treasury proposal, however, one large agency can cause as many issues.
When they entered office the Obama economic team, Treasury Secretary, Tim Geithner in particular weathered harsh criticisms from both the right and the left. They also resisted both the right-wing group that wanted to “let the banks fail” and the left-wing group that wanted to “nationalize the banks.” As a result of ignoring both of these groups they have proposed a balanced plan for regulatory reform.
However, there seem to still be rocky shoals ahead on the regulatory reform front. Today , according to The Washington Post, Sen. Mark Warner announced through an op-ed in the Financial Times that he cannot support the Treasury Department proposal because it does not actually create a strong single regulator. While the Treasury’s proposal simply merges the Office of the Comptroller of the Currency and the Office of Thrift Supervision to create the National Bank Supervisor. The “Nationalize the Banks” crowd will flock to Sen. Warner’s proposal because it appears tougher then the Treasury proposal, however, one large agency can cause as many issues.
Thursday, July 2, 2009
School Choice Makes Strides in Louisiana
Jillian Melchior
New measures introduced by Louisiana policymakers make the forecast for more school choice positive, thanks to a $10 million initiative included in Gov. Bobby Jindal's (R) 2008-2009 budget.
The bill to carry out Jindal's initiative, HB 1347, introduced April 22 by state Rep. Austin Badon (D-New Orleans), would distribute scholarships through the Louisiana Department of Education and Board of Education to New Orleans students attending nonpublic schools.
"We must also provide educational scholarships to parents in Orleans Parish who often have no choice for their children other than the local failing school," Jindal said in his March 2008 Regular Session Opening Speech to the state legislature. "These scholarships follow a very simple and pure American principle--that every child has an equal right to good opportunities and a good education."
New measures introduced by Louisiana policymakers make the forecast for more school choice positive, thanks to a $10 million initiative included in Gov. Bobby Jindal's (R) 2008-2009 budget.
The bill to carry out Jindal's initiative, HB 1347, introduced April 22 by state Rep. Austin Badon (D-New Orleans), would distribute scholarships through the Louisiana Department of Education and Board of Education to New Orleans students attending nonpublic schools.
"We must also provide educational scholarships to parents in Orleans Parish who often have no choice for their children other than the local failing school," Jindal said in his March 2008 Regular Session Opening Speech to the state legislature. "These scholarships follow a very simple and pure American principle--that every child has an equal right to good opportunities and a good education."
Saturday, April 18, 2009
Treasury Reports CPP dividend for First Quarter
According to Reuters the U.S. Treasury is reporting that investments made through the Capital Purchase Program have earned $2.52 billion in dividends. This program seeks to assist in strengthening the financial sector. Secretary Geithner said, in a letter to lawmakers, that he would publish dividend data on a monthly basis so the people could evaluate the results of the program.
Friday, April 17, 2009
Banks Complain About 5 Percent Interest Rate
According to Scrath Pad bank CEO’s are protesting the requirement that they pay a 5 percent interest rate on their TARP funds. They must have though they could borrow th emoney for free becasue it was lent through the Treasury. The Bankers Association should know better. If they want banks to have zero percent loan maybe they should also advocate for students who currently pay 6 percent or 8.5 percent on a PLUS loan on their debt for the current academic year to also pay zero percent on their academic loans. They are claiming that the 5 percent amounts to an exit fee because it was predicated on the thought that banks would need money for years.
They suddenly want to get out of a legal binding contract, and none of us could get out of our loan contracts just because we did nto like it. They are complaining about changes in the rules being retroactive. Well, so how it feels when something changes retroactively and applies to everything.
They suddenly want to get out of a legal binding contract, and none of us could get out of our loan contracts just because we did nto like it. They are complaining about changes in the rules being retroactive. Well, so how it feels when something changes retroactively and applies to everything.
Sunday, April 12, 2009
Plans, Staffing and Calls for Resignation
The American people are getting impatient and are frustrated abouot the state of the economy. The target of their frustration is Treasury Secretary Timothy F. Geithner. According to the New York Times Secretary Geithner has yet to produce a plan to deal with systemic risk. This charge is untrue becauause his plan for controlling systemic risk is posted at FinancialStability.gov where anyone in the media or general public can access and evaluate it.
Some of the extra challenges that Mr. Geithner faces are do to not having a full staff at Treasury. He is, according to The New York Times, working with a "skeleton crew" of unofficial senior advisors. This is the case even though Mr. Obama has nominated people for three senior positions the Senate Finance Committee has not held hearings on any of them.
A group of people from across the aisle including Sen. Jim DeMint have called on Mr. Geithner to resign. However, Mr. Obama says he will not accept the Treasury Secretary's resignation should he tender it. This is a good thing because the most importnat thing at this time tis to get the Treasury Department properly staffed.
Some of the extra challenges that Mr. Geithner faces are do to not having a full staff at Treasury. He is, according to The New York Times, working with a "skeleton crew" of unofficial senior advisors. This is the case even though Mr. Obama has nominated people for three senior positions the Senate Finance Committee has not held hearings on any of them.
A group of people from across the aisle including Sen. Jim DeMint have called on Mr. Geithner to resign. However, Mr. Obama says he will not accept the Treasury Secretary's resignation should he tender it. This is a good thing because the most importnat thing at this time tis to get the Treasury Department properly staffed.
Sunday, March 22, 2009
Christian Citizenship
This past year has been spent humbling myself in prayer asking the Lord this question: What does it mean to be a Christian Citizen in a secular country such as the United States? How do I live your will and be a light to others while allowing them their liberty of conscience? How do I best help people to understand that a pro-life position is more than just an anti-abortion position, but one that honors all life the pre-born as well as the life that is already born?
I have yet to receive complete answers to all of these questions. However, the Lord has given me one simple rule that is to choose leaders that will enact and support laws which while honoring the secular nature of the country would represent Godly ways. For example, one question I had early on was weather since the bible calls on individuals to care for the needy and also says in Romans 13 that the only “the only authority is established by God” and that the ruler is “God’s servant.” The answer to the question is not clear, however, it became clearer after I thought about it more and come up with the principle that we must care for the needy. However, I still struggle with a concern about weather civil disobedience is acceptable to God. If you are supposed to as Romans 13 commands to obey the authority then how can one participate in civil disobedience while still obeying God? This is not an easy question because we have had great leaders like Martian Luther King, Jr. who led civil disobedience during the Civil Rights Movement. I suppose he should be a guide as to that question.
What God expected of me became clearer upon close study of Romans 13 and humble prayer how I was to carry out my responsibility as a Christian Citizen. This means submission to family (including marriage) (Ephesians 5:22 – 6:3), church leadership (Eph. 5:21, 1 Cor. 16:16, 1 Pe 5:5), and civil government (Romans 13:1-8) while remembering that disobedience is called for when I am asked to disobey God’s law to follow civil law (Acts 4:19-20).
It is easy to see how this applies in the private sphere (home and Church), however, it is still and always will be a struggle to apply in the public (government/political sphere). This means, at minimum, supporting laws and regulations that support life, marriage, and family while attempting to change those that don’t meet the standards of the Lord. The challenge here is not showing any disrespect for other human beings which we are called to love.
The greatest responsibility of any citizen, but particularly the government is to preserve and protect innocent life. The unalienable right to life is granted in the Declaration of Independence and the bible, as well as by many criminal laws that punish those who murder or kill. However, this means more than being simply against abortion and vowing to appoint justices who over turn Roe v Wade, it also means that all living and pre-born must have access to health care so that they can be healthy. It means access to a quality education, affordable housing, and a safe community in which to live, learn, and worship. An important part of this is creating economic policies (including trade) that reduce/eliminate debts and deficits and encourages investments in human potential.
Supporting marriage and family in the public sphere is more than simply defining marriage as between a man and a woman, but that is a good start. Then we need to move on from there and create a family friendly environment with policies on all issues which allow the family to be the primary place where children are reared. This also means keeping government out of ecclesial affairs. The First Amendment was meant to keep government out of the garden and not the people of the garden out of government.
In conclusion, at this point, being a Christian Citizen means sincerely obeying authority and institutions created by God as well as those that are not created or sanctioned by God. It means advocating changes in policy that honor, life, family, and allow the Church to be the Church. This is part of honoring our citizenship and knowing our heritage.
I have yet to receive complete answers to all of these questions. However, the Lord has given me one simple rule that is to choose leaders that will enact and support laws which while honoring the secular nature of the country would represent Godly ways. For example, one question I had early on was weather since the bible calls on individuals to care for the needy and also says in Romans 13 that the only “the only authority is established by God” and that the ruler is “God’s servant.” The answer to the question is not clear, however, it became clearer after I thought about it more and come up with the principle that we must care for the needy. However, I still struggle with a concern about weather civil disobedience is acceptable to God. If you are supposed to as Romans 13 commands to obey the authority then how can one participate in civil disobedience while still obeying God? This is not an easy question because we have had great leaders like Martian Luther King, Jr. who led civil disobedience during the Civil Rights Movement. I suppose he should be a guide as to that question.
What God expected of me became clearer upon close study of Romans 13 and humble prayer how I was to carry out my responsibility as a Christian Citizen. This means submission to family (including marriage) (Ephesians 5:22 – 6:3), church leadership (Eph. 5:21, 1 Cor. 16:16, 1 Pe 5:5), and civil government (Romans 13:1-8) while remembering that disobedience is called for when I am asked to disobey God’s law to follow civil law (Acts 4:19-20).
It is easy to see how this applies in the private sphere (home and Church), however, it is still and always will be a struggle to apply in the public (government/political sphere). This means, at minimum, supporting laws and regulations that support life, marriage, and family while attempting to change those that don’t meet the standards of the Lord. The challenge here is not showing any disrespect for other human beings which we are called to love.
The greatest responsibility of any citizen, but particularly the government is to preserve and protect innocent life. The unalienable right to life is granted in the Declaration of Independence and the bible, as well as by many criminal laws that punish those who murder or kill. However, this means more than being simply against abortion and vowing to appoint justices who over turn Roe v Wade, it also means that all living and pre-born must have access to health care so that they can be healthy. It means access to a quality education, affordable housing, and a safe community in which to live, learn, and worship. An important part of this is creating economic policies (including trade) that reduce/eliminate debts and deficits and encourages investments in human potential.
Supporting marriage and family in the public sphere is more than simply defining marriage as between a man and a woman, but that is a good start. Then we need to move on from there and create a family friendly environment with policies on all issues which allow the family to be the primary place where children are reared. This also means keeping government out of ecclesial affairs. The First Amendment was meant to keep government out of the garden and not the people of the garden out of government.
In conclusion, at this point, being a Christian Citizen means sincerely obeying authority and institutions created by God as well as those that are not created or sanctioned by God. It means advocating changes in policy that honor, life, family, and allow the Church to be the Church. This is part of honoring our citizenship and knowing our heritage.
Saturday, February 14, 2009
Stimulating Discrimination
Many Democrats and their allies complain of writing discrimination in to the Constitution/law when Republicans take action that supports and endorses traditional values. However, in H.R. 1 American Recovery and Reinvestment Act they have written in to the law discrimination of their own. They ban funding from going to institutions or portions of institutions that teach courses with sectarian content at the Post-Secondary level.
Sunday, February 1, 2009
Free-Market Principles for the Digital Economy
“The Internet,” it is often said, “changes everything.” For consumers, business leaders, and elected officials, this may not be far from the truth. But the transistion to a digital economy does not repeal the laws of economics, change our concept of justice, or invalidate the desirability of what classical liberal thinkers call “the rule of law.” The task is to apply timeless truths and the scientific method to a new and fast-changing reality.
1.Governments must allow electronic commerce to grow up in an environment driven by markets, not burdened with extensive regulation, taxation, or censorship. While government actions will not stop the growth of electronic commerce, if they are too intrusive, progress can be substantially impeded.
2.Where possible, rules for the Internet and electronic commerce should result from private collective action, not government regulation.
3.Governments do have a role to play in supporting the creation of a predictable legal environment globally for doing business on the internet, but must exercise this role in a non bureaucratic fashion.
4.Greater competiton in telecommunications and broadcast industries should be encouraged so that high-bandwith services are brought to homes and offices around the world and so that the new converged marketplace of broadcast, telephony, abd the Internet operate on laws of competiton and consumer choice rather than those of government regualation.
5.There should be no discriminatory taxation against Internet commerce.
6.The Internet should function as a seemless global marketplace with no artificial barriers erected by governments.
7.Protection of private property rights is an essential condition for effective planning and the long-term growth of the digital economy.
8.Effective public policy advocacy abd education are required to overcome opposition to change by special interest groups if the public is to public benefit from the many opportunities and efficiencies made possible by the digital revolution.
1.Governments must allow electronic commerce to grow up in an environment driven by markets, not burdened with extensive regulation, taxation, or censorship. While government actions will not stop the growth of electronic commerce, if they are too intrusive, progress can be substantially impeded.
2.Where possible, rules for the Internet and electronic commerce should result from private collective action, not government regulation.
3.Governments do have a role to play in supporting the creation of a predictable legal environment globally for doing business on the internet, but must exercise this role in a non bureaucratic fashion.
4.Greater competiton in telecommunications and broadcast industries should be encouraged so that high-bandwith services are brought to homes and offices around the world and so that the new converged marketplace of broadcast, telephony, abd the Internet operate on laws of competiton and consumer choice rather than those of government regualation.
5.There should be no discriminatory taxation against Internet commerce.
6.The Internet should function as a seemless global marketplace with no artificial barriers erected by governments.
7.Protection of private property rights is an essential condition for effective planning and the long-term growth of the digital economy.
8.Effective public policy advocacy abd education are required to overcome opposition to change by special interest groups if the public is to public benefit from the many opportunities and efficiencies made possible by the digital revolution.
Saturday, January 31, 2009
What a Day, What a party, What a Country
Ever day is a new beginning for all of us. However, the last three months have represented some of the most extraordinary new beginnings in history. We have inaugurated the first black president and the Republican party has elected the first black chairman of either major political party. The Land of Lincoln produced President Obama and the Party of Lincoln produced Chairman Steele.
These two milestones represent a major improvement and forward movement in race relations as well as allows the country to celebrate the visible forward movement on the Rev. Dr. King's dream, though there is still work to be done. It would be unfair and incorrect to assume that these two milestones only occurred because of either white guilt or black pride alone. These may have been present to some degree, but Mr. Obama and Mr. Steele were elected on the strength of their character and the strengths they posses as individuals.
The election of both men represent a desire to have excellent communicators at the helm. They also mark a shift and reaction against the old order. Mr. Obama had to first best Mrs. Clinton and Mr. Steele had to beat out an incumbent chairman chosen by Mr. Bush. Even though I voted for Mr. Huckabee in the primary, Mr. Barr in the general election and supported Mr. Dawson for RNC chair I see the elections of Mr. Obama and Mr. Steele as positive directions in the country. I still like Mr. Dawson and admire his accomplishments but realize that Mr. Steele is most likely to be able to counter Mr. Obama effectively without race becoming an issue. Mr. Steele is also very well qualified and an extremely able communicator. These factors will aid us in the hard work to come of countering Mr. Obama's most unacceptable policies and presenting our own vision.
These two milestones represent a major improvement and forward movement in race relations as well as allows the country to celebrate the visible forward movement on the Rev. Dr. King's dream, though there is still work to be done. It would be unfair and incorrect to assume that these two milestones only occurred because of either white guilt or black pride alone. These may have been present to some degree, but Mr. Obama and Mr. Steele were elected on the strength of their character and the strengths they posses as individuals.
The election of both men represent a desire to have excellent communicators at the helm. They also mark a shift and reaction against the old order. Mr. Obama had to first best Mrs. Clinton and Mr. Steele had to beat out an incumbent chairman chosen by Mr. Bush. Even though I voted for Mr. Huckabee in the primary, Mr. Barr in the general election and supported Mr. Dawson for RNC chair I see the elections of Mr. Obama and Mr. Steele as positive directions in the country. I still like Mr. Dawson and admire his accomplishments but realize that Mr. Steele is most likely to be able to counter Mr. Obama effectively without race becoming an issue. Mr. Steele is also very well qualified and an extremely able communicator. These factors will aid us in the hard work to come of countering Mr. Obama's most unacceptable policies and presenting our own vision.
Tuesday, January 27, 2009
Secretary of the Treasury Timothy F. Geithner
On January 26, 2009, Timothy F. Geithner was sworn in as the 75th Secretary of the United States Department of the Treasury in a ceremony attended by President Barack H. Obama, and Vice President Joseph R. Biden Jr.
Before his nomination to the Treasury, Secretary Geithner served as the ninth president and chief executive officer of the Federal Reserve Bank of New York, where he began on November 17, 2003. In that capacity, he served as the vice chairman and a permanent member of the Federal Open Market Committee, the group responsible for formulating the nation's monetary policy.
Secretary Geithner first joined the Department of Treasury in 1988 and worked in three administrations for five Secretaries of the Treasury in a variety of positions. He served as Under Secretary of the Treasury for International Affairs from 1999 to 2001 under Secretaries Robert Rubin and Lawrence Summers.
He was director of the Policy Development and Review Department at the International Monetary Fund from 2001 until 2003. Before joining the Treasury, Secretary Geithner worked for Kissinger Associates, Inc.
Secretary Geithner graduated from Dartmouth College with a bachelor’s degree in government and Asian studies in 1983 and from the Johns Hopkins School of Advanced International Studies with a master’s in International Economics and East Asian Studies in 1985. He has studied Japanese and Chinese and has lived in East Africa, India, Thailand, China, and Japan.
He and his wife, Carole Sonnenfeld Geithner, have two children.
Speeches & Statements
2004
03/25 - Change and Challenges Facing the U.S. Finanacial System05/27 - Perspectives on the U.S. Financial System06/09 - The Changing Face of Risk management06/10 - The Bretton Woods Instiutions in the 21st Century10/01 - Changes in the Structure of the U.S. Financial System and Implications for Systemic Risk10/14 - Challenges Facing the Global Payments System11/17 - Hedge Funds and Their Implictions for the Financial System12/08 - Remarks at the National Academy Foundation's 2004 Dinner
01/13 - Key Challenges in Risk Management01/19 - A View from the Federal Reserve Bank of New York03/30 - Perspectives on Monetary Policy and Central Banking
04/01 - Perspectives on U.S. Monetary Policy04/12 - Economic Policy and Sustainability of U.S. Productivity Growth04/19 - Financial Integration and its Implication for International Cooperation04/25 - Remarks by Timothy F. Geithner at the Institute of International Finance, Inc.'s Annual Membership Meeting in Washington, D.C.10/18 - Challenges in Risk Management10/19 - U.S. and the Global Economy
2006
01/11 - Some Perspectives on U.S. Monetary Policy01/23 - Policy Implications of Global Imbalances02/28 - Risk Management Challenges in the U.S. Financial System03/09 - U.S. Monetary Policy in the Global Financial Environment04/05 - Risk Management Challenges in a Changing Financial Environment05/16 - Implications of Growth in Credit Derivatives for Financial Stability
05/19 - Principles to Guide Future Evolution of Financial Supervision and Regulation05/31 - Uncertainty and Transperancy in the Conduct of Monetary Policy
09/15 - Hedge Funds and Derivatives and their Impliction for the Financial Systems
10/04 - Progress Toward Financial Stability in Emerging Market Economies
10/26 - Global Economic and Financial Integration: Some Implications for Central Banking
2007
01/11 - Developments in the Global Economy and Implications for the United States
02/28 - Liquidity and Financial Markets
03/23 - Credit Markets Innovations and Their Implications
04/17 - Global Economic Integration: The Opportunities and the Challenges
05/04 - Reflections on the Changing Global Economy
05/15 - Liquidity Risk and the Global Economy
06/13 - Asia, the World Economy and the International Financial System
06/20 - Reflections on the Asian Financial Crises
12/13 - Restoring Market Liquidity in a Financial Crisis
2008
03/06 - The Current Financial Challenges: Policy and Regulatory Implications
04/03 - Actions by the New York Fed in Response to Liquidity Pressures in Financial Markets
06/09 - Reducing Systemic Risk in a Dynamic Financial System
07/24 - Systemic Risk and Financial Markets
2009
01/26 - Remarks of Secretary Timothy Geithner (Swearing-In Ceremony)
01/27 - Treasury Secretary Opens Term with New Rules To Bolster Transperancy, Limit Lobbyist Influence in Federal Investment Decisions03/25 - Treasury Secretary Tim Geithner Remarks Before the Council on Foreign Relations
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