Why on earth would your librul media not want to investigate how outgoing Treasury Secretary Tim "Turbo Tax" Geithner was accused of leaking inside information to Wall Street --by the Richmond Fed president? I can't imagine, because it does seem like a story to those of us outside the Beltway bubble. Maybe the complicit ladies and gentlemen of the corporate media could get up off their knees and, you know, actually cover this story? Maybe earn those paychecks for doing something other than parroting the conventional wisdom of the elite?
Columbia Journalism Review's Ryan Chittum, about the 2007 Federal Reserve transcripts released last week:
Of all the majors, Reuters does the best, and it advances the story by getting Lacker to stand by his 2007 comments about Geithner and to expand them to include other banks beyond BofA:
“My understanding was that (New York Fed) President Geithner had discussed a reduction in the discount rate with these banks in connection with these initiatives.”
But Reuters still falls well short of telling the whole story here. It doesn’t take the obvious next step and look at what happened in markets that day.
For that we turn to… Zero Hedge, which appears to have been the first to spot the Geithner-Lacker exchange last Friday:
What makes this much more interesting, as Zero Hedge notices, is that the Lacker-Geithner spat came at about 6:15 p.m. on August 16, four hours after stocks had jumped a stunning 4 percent in the span of sixty minutes.