Kudo’s to MattlinPatterson Advisors chairman Mark Patterson for exposing ”Tiny” Tim Geithner, and to ZERO HEDGE, The Analytic and Naked Capitalism for copying the text of the article before telegraph.uk pulled the link.
Because the text may dissapear elsewhere (as may Mr. Patterson) we’ve copied it below:
Mr Patterson said the US Treasury is out of its depth and seems to be trying to put off drastic action by pretending that the banking system is still viable.
“It’s a sham. The banks are insolvent. The US government is trying to sedate the public because they are down to the last $100 (billion) of the $700 (billion) TARP funds. They think they’re doing this for the greater good of society,” he said, speaking at the Qatar Global Investment Forum.
Mr Patterson said it would be better for the US to bite the bullet as Britain has done, accepting that crippled lenders must be nationalised. “At least the British are not hiding the bail-out,” he said.
More from the Telegraph article:
“This is not a normal recession and there will be no V-shaped recovery. The crisis has destroyed leveraged companies. We’re going to see a catastrophic increase in the number of LBO’s (leveraged buyouts) going into default because they’re knee-deep in debt and no solution exists since they can’t refinance,” he said.
“The US government has thrown 29% of GDP at this crisis compared to 8% in the early 1930s. The Fed’s balance sheet has risen from $900 billion to $2.7 trillion to bail out the system. America has to do it because the only way out is to debase the currency, but that is going to lead to some very high inflation three years down the road,” he said.
As is par, this is just another qualified source confirming what we’ve been stating, in essence since last September. And it’s nice to see the OTS approve MattlinPatterson’s leveraged buyout of FLAGSTAR, which confirms Patterson’s statement above (doesn’t look like they’ll be defaulting anytime soon). But this is a small deal that shouldn’t wrankle the FED too much. After all, no LBO has the juice to buy out JPM or “Golden Sacks” so who really cares?
Meanwhile, back at Big Brother Central, the general populace whitewash is working, and the suckers are dancing to the DOW, but I take exception that “America has to do it ” for we certainly did not. The HBPA is the answer, and we’ve been pushing it for 9 months now. And with the printing presses working 25 hours a day at the FED we think Weimar style hyperinflation will set in less than 2 years down the road.
:-(
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My comment is not for this particular post. It’s the way I view not only this post but your entire site. KEEP UP THE GREAT WORK!!! Our tax dollars has already made these white collar criminals too wealthy already!
But why should they think any different? We’ve bailed out these people several times over the past century. They knew the taxpayers money would come to the rescue when they entered their ‘den of theives’.