GEITHNER'S SECOND WAVE MAY BE A TSUNAMI

"We're not going to have.... a second wave of financial crisis..... We'll do what is necessary to prevent that.......and that is completely within our capacity to prevent."

The above statement was made by Treasury Secretary Timothy Geithner when interviewed on NPR's "All Things Considered" program in the last few days.

Apart from the Treasury Secretary's dismal record to date, there are three problems with his statement:

• The phraseology indicates that a second wave is coming and
• He does not spell out what he would do if the second wave did appear.
• Finally, if the Fed cannot spot bubbles forming in the economy, what chance does it have of spotting waves when its back is turned on the ocean? (more)