May 21, 2014
Treasury Secretary Geithner – and other key players in the Bush and
Obama administrations – pretended that they were helping homeowners.
But it is now beyond dispute that that they didn’t really care about helping homeowners … they only wanted to foam the runway” for the big banks.
Geithner made the pathetic excuse in his new book that helping
homeowners wouldn’t have helped the economy. And he used blatantly false
numbers to do it.
As two prominent economists – Atif Mian (professor of economics and
director of the Julis-Rabinowitz Center for Public Policy and Finance at
Princeton) and Amir Sufi (Chicago Board of Trade Professor of Finance
at the University of Chicago Booth School of Business and co-director of
the Initiative on Global Markets) – note at the Washington Post’s Wonkblog:
Tim Geithner has a problem with helping underwater
homeowners…. He claims he doesn’t like the idea because the economic
effects of helping underwater homeowners would have been small. But that
is dead wrong.
Here is a paragraph from his book: