Economics

Isn't It Awfully Nice For the Fed to Have a Penis?

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Rep. Melvin Watt sizes up the endowment and potency of the Federal Reserve

An audit of the Federal Reserve Bank would "substantially castrate the Fed so it cannot do what it was set up to do," Rep. Melvin Watt (D., N.C.) said yesterday, in an effort to tamp down a congressional uprising against the Bush/Obama economic team.

This devastating exchange Thursday between Secretary of the Treasury Tim Geithner and Rep. Kevin Brady (R-Texas); along with weeks of close attention to the mismanagement of federal stimulus funds; Rep. Ron Paul's long-lived Fed Audit bill; and last but not least, continuing horrible news on every indicator Geithner cited to Brady (and a few he didn't); have together started a fire that is threatening President Obama's economic brain trust.

The Wall Street Journal gives some color:

At the Joint Economic Committee, a couple of House Republicans called for the resignation of Mr. Geithner, who, as president of the Federal Reserve Bank of New York, played a major role in last fall's moves to prevent the collapse of the financial system. "The public has lost all confidence in your ability to do the job," said Rep. Kevin Brady, Republican of Texas.

Mr. Geithner, in an unusual public display of pique, fired back. "What I can't take responsibility is for the legacy of crises you've bequeathed this country," he told Mr. Brady.

Although several Democrats defended Mr. Geithner at the hearing, some liberal Democrats have been complaining that the Obama administration isn't doing enough to combat unemployment….

"Quite frankly, all the gambling on Wall Street is doing nothing to put people back to work in America and rebuild our economy," said [Rep. Peter DeFazio (D., Ore.), who earlier this week urged Geithner to resign].

This is the Fed's balance sheet. How is yours?

One issue that has dogged Mr. Geithner is the rescue of American International Group Inc. last fall…. Mr. Geithner said Thursday that the government lacked powers it needed to handle the collapse of a financial company that wasn't legally organized as a bank. "Coming into AIG we had, basically, duct tape and string," he said…

Mr. Geithner's job status doesn't appear to be in jeopardy and several Democrats leapt to his defense.

I'm not so sure about that last bit. In his congressional hissy fit, Geithner gave the game away: He can't lay this on President Bush because, as Brady pointed out, when Bush presided over the $14 trillion inflation of assets that got us where we are today, Geithner was working the pumps with more eagerness than most .

As I noted the other day, Geithner's actions as President of the Federal Reserve Bank of New York will probably not be deemed sufficient to fire him from his current job. But it is false and stunningly uncouth for Geithner to blame the previous administration for his manifest failure as head of the Treasury.

Geithner v. Brady, on television:

As for Melvin Watt's husbandry metaphor, you may want to unpack the image a little bit. (If you need to be alone, I'm totally cool with that.) When you castrate an animal, you do so to keep it from breeding (or to groom it for soprano roles in Grande Opera). So exactly what action is the Fed performing for the U.S. economy that requires intact male genitals?

NEXT: In Hollywood, "Show Me Some Skin" and "Show Me the Money" Aren't the Same Thing

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  1. “So exactly what action is the Fed performing for the U.S. economy that requires intact male genitals? ”

    I think that the Fed needs it’s balls and penis so that it can fuck us in the ass?

    am I right?

  2. Watt’s in good company with people like Madoff and anyone else that thinks an audit is unwarranted because it may get in the way of what an entity is set up to do.

  3. What if they just circumcise the Fed? That way, we can have a nice circumcision flamewar, you baby-mutilating monsters.

    1. Well at least they can more easily keep clean, and not horrify women when they see it.

      1. The smegma of secrecy is its own reward, sage.

        1. The FED should be abolished as the real-world actualization of Moral Hazard that it is.

        2. And the helmet of truth should be visible to all. Whatever that means.

    2. Ron Paul: Moyle of the Fed?

  4. An audit of the Federal Reserve Bank would “substantially castrate the Fed so it cannot do what it was set up to do,” Rep. Melvin Watt (D., N.C.) said

    Mel, you say that like it’s a *bad* thing.

  5. Nice Monty Python reference, Tim.

  6. When are you going to put a little sidedick up there, something for the ladies? Maybe a dude in a banana hammock, licking a… I don’t know… carp or something?

  7. Is that Sheila Jackson Lee to Watt’s left, sizing up his endowment? She looks a little disappointed.

    1. It’s THIS BIG, I swear to God it is!

  8. Is that Sheila Jackson Lee to Watt’s left, sizing up his endowment? She looks a little disappointed.

    1. Who’s that disembodied, somber looking, fat Hitler between the two of ’em?

      1. Yikes! He could have played the role of the fanatic in an off-off-off-off (as in Boise, Idaho) Broadway production of The Producers.

  9. Damn it all.
    Damn it all.

  10. They should just get Deidre McCloskey to head the Fed.

    1. Well if the FED is really hung, how about Deidre Holland?

  11. There’s a real simple solution.

    Mr. Geithner. Please present to me or direct me to where I can find anything coming out of the NY Fed with your name on it attempting to sway fed policy due to concerns over any of the financial debacles experienced in the last 2 years.

    Problem solved. Either he did his job, watched the data, and saw something was wrong or potentially wrong. Or he missed the ques and failed.

    Fuck TurboTax Timmy. He’s Paulson light.

  12. ‘Don’t audit me, man! I can’t perform under pressure!’

  13. I think Watt’s referring to the Observer Principle. If you audit the Federal Reserve Bank, you alter its function. You can observe the exact position of the Fed at a given moment but at the expense of altering its velocity. Or you can measure the velocity of the Fed but then you can’t be sure of its position at a given moment.

    Either that or the way The Fed operates is a scam/sham.

    1. I think their is a cat somewhere that is pissed at your analogy…

      1. ugh, there not their….god, I am a ‘tard.

  14. The real joke here is the contention that the Fed is actually “independent” now.

    1. Yeah, as if the FED wasn’t the largest example of system capture by the financial cartel in world history.

  15. Shut the fuck up, Mel Watt.

    Die in a fire, Tim Geithner, you rat-faced bag of fuck.

  16. Mel used to be my congressman when I lived in Winston-Salem – which was the home of Wachovia and is the home of BB&T. I would not be surprised if some serious banker cash made its way to his campaign coffers down through the years. Not that I am accusing him of bribery or anything like that, just noting that he is diligently defending his constituents’ interests.

    1. Top 20 Contributors
      Congressman Melvin L Watt 2007 – 2008

      http://www.opensecrets.org/pol…..mp;recs=20

  17. So, with the item headline, are you saying that the guys at the Fed are just dicks? If so, try harder (ahem). That’s common knowledge, old news.

    I say, off with their heads (ahem).

  18. Seeing the panic and despair on the faces of those arguing against the audit just makes me want it all the more.

  19. Who’s that disembodied, somber looking, fat Hitler between the two of ’em?

    And who Photoshopped him in there?

  20. Doesn’t castration also reduce the aggressiveness of the castrated?

  21. ‘Who’s that disembodied, somber looking, fat Hitler between the two of ’em?’

    HITLER: Don’t worry, we’ll simply let the Fed fix the financial mess.

    MEL WATT: [coughs nervously] Mein Fuhrer, ah, there’s a bill in the Congress to audit the fed. The bill is gaining a lot of momentum.

    HITLER: [Removes glasses] Everyone except Geithner, Frank and Bernanke leave now. [After the others have left, Hitler throws a tantrum and pounds the table] You overpaid morons! You pencildicked retards! You told me the financial situation was under control, then when it wasn’t, you told me that there would be no political backlash against the Fed! With this level of economic stupidity, I may as well be taking financial advice from . . . Stalin!

  22. With all the Downfall parodies already out there, it’s east to picture your newest version.

    1. I don’t have the copyright to the footage, anyway I don’t know how to ‘east’ something.

  23. “What I can’t take responsibility is for the legacy of crises you’ve bequeathed this country,” he told Mr. Brady.

    wha… what did me mean by this?

    1. I don’t know if perhaps I’m reading what I want to see, instead of what it actually means, but my interpretation was that he’s blaming the collapse on such things as Fannie and Freddie, which are squarely the fault of congress.

      1. nah, it’s simple team blue vs. team red bs. he’s lumping brady in with the bushmaster

  24. as long as there are no food riots, I’m unwilling to label Geithner’s performance so far a “manifest failure.”

  25. Which one didn’t pay his taxes?

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