Despite promises of open government, the Obama administration tried to “cover up the very existence of smoking-gun documents” prepared for a meeting in which former U.S. Treasury Secretary Henry M. Paulson allegedly coerced major banks to allow the government to take equity stakes, according to conservative watchdog group Judicial Watch.

On April 21, Treasury Secretary Timothy Geithner said the “vast majority” of U.S. banks have more capital than needed.  Geithner’s remarks come on the heels of a surge in reported quarterly profits by the big banks.

The base metals were mixed on Tuesday. Copper was down sharply in the early pre-dawn hours and lumbered along below the $2 mark until mid-morning, when buyers emerged to push it back to a finish at $2.0338/lb., down 2¾ cents.

Mr. Timothy Geithner was the man who was on watch when the ship ran aground. His job, as head of the Federal Reserve Bank of New York, was to keep an eye on Wall Street. Now, he’s come forward with a new $1 trillion plan to get the boat back on the water.

Geithner Calls For Regulatory Reform; Fed President Sees 2009 Rebound; Bank of China Posts 59% 4Q Profit Drop; Goldman Plans to Repay TARP money quickly; U.K. Inflation up 3.2% in February; Major Exchanges Want New Curbs on Short-Selling; Lloyd’s Says Insurance Rates to Rise; Copper Prices Take Breather After Rising 30% on China Demand; Mexico’s Inflation Holds Up Rate Cut

World stocks hit five-week highs on Tuesday on optimism a U.S. plan to purge toxic assets from banks’ balance sheets could ease the misery of the sector, but the rally also provided investors a chance to take profits.

Finance ministers and central bankers from the Group of 20 nations, which account for more than 80% of the world economy, promised at a meeting Saturday to do “whatever is necessary” to fix the global economy. 

The question facing every investor today, and the one that could wield a very large influence over one’s investment fortunes – is whether deflation or inflation will hold sway during the next couple of years.

The base metals were mixed on Wednesday. Copper started down in the pre-dawn hours and, except for a brief late morning bump up, declined through the day, finishing just off its intraday lows at $1.5196/lb., down 4¾ cents.

DEPRESSION II …The Horror…coming soon to theatres near you! “It’s gone deep. It’s gotten worse,” said the president.