Geithner Throws Tobin Tax under the bus

U.S. Secretary Geithner says a Tobin Tax, a tax on financial transactions, is something America will not support and slaps down the U.K. Prime Minster for mentioning the "T" word.

A day-by-day financial transaction tax is not something we're prepared to support.

Oh really? There are already various proposals introduced in Congress for some type of transaction tax on speculation in commodities which affect the national economy (oil).

As noted in this previous post, the only real way a financial transaction tax could work is if it is implemented globally. Else, trades will simply move to a country which has no such tax.

Financial Balance of Terror

Sometimes you wonder if Larry Summers is reading the blogs. The catch phrase Financial Balance of Terror has been coined by none other than 1990's Financial Terror Architect, Obama economic adviser Larry Summers!

President Barack Obama and fellow Group of 20 leaders are trying to end what Obama adviser Lawrence Summers has called the “financial balance of terror.”

World leaders, meeting in Pittsburgh last week, adopted a framework for more durable economic growth as they sought to prevent a replay of the worst crisis since the Great Depression. They also acknowledged the growing clout of China and other emerging economies by giving them a bigger voice in decision- making.

Toxic Assets, G20 and AIG releases some payout disclosures

I find this entire G20 news almost a game of chicken. Now they are discussing tackling toxic assets:

Officials meeting near London this weekend outlined guidelines on how governments should rid banks of distressed securities that have devastated companies from Citigroup Inc. to Royal Bank of Scotland Group Plc. With the G-20 calling the fight its “key priority,” Treasury Secretary Timothy Geithner vowed in an interview to “move quickly.”

But haven't we heard this before?

It's almost like hot potato with no one wanting to admit to holding billions in worthless derivatives.

What is more interesting is how other countries want the United States to clean up these toxic assets while the U.S. seems to be pushing more spending.