Here are a few gems from the interview:
Mr. Geithner, has been /failing/ for 15 years; he has caused this problem. Mr. Geithner has been head of the New York Fed for several years and that's the office that was supposed to supervise Wall Street and the financial system. He came up with the TARP and all these absurd bailouts. Mr. Geithner has never known what he is doing and everybody will discover that, including Mr. Obama.
The idea that you can fix a period of excess borrowing and excess consumption by more borrowing and more consumption to me is just ludicrous.
We should do what the U.S. told Japan to do in the nineties. You let companies go bankrupt, you clean out the system, you wipe out everybody that is insolvent. Mr. Greenspan went to Japan and said, “you are doing it wrong”, you have got to let people go bankrupt, you have got to clean out the system. The Japanese did not do it. They continued to prop up zombie banks and zombie companies and they still talk about the lost decade. Geithner said the other day that the Japanese did not spend enough money; all they did was to spend money. I almost fell out of my chair when I heard that. America is making exactly the same mistakes, and the politicians are making it worse, not better. Do you know why they are making it worse? Because they want to support their friends on Wall Street and the bankers so that they all can keep their Maseratis.
Bad bank? They are not letting anyone fail. But the idea that the US Government is coming in and buying these toxic assets. Who is going to value these assets, either the banks are and they are going to set it to high, the taxpayers atre going to lose out…it's not going to work, it has never worked.
If we keep putting in more and more government money, we will have a depression. This has never worked. Look at countries that took their pain. It was horrible for 1 or 2 years. But they cleaned the system and came out with sound economies. Korea, Mexico, Russia took the pain but cleaned the system and became sound economies, grew fast in the next few years.
