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Jacob Heilbrunn

Jacob Heilbrunn

Posted February 11, 2009 | 10:19 AM (EST)

Geithner Must Go


As the stock market plunges, as unemployment soars, and as banks fail, who has President Obama selected to revive the economy? Henry M. Paulson's mini-me, Treasury Secretary Tim Geithner. It's becomingly increasingly obvious that Geithner is the single, worst choice President Obama has made to join his cabinet. Before he can do any further damage, Obama should consider appointing a Treasury Secretary who can hold a press conference without his voice cracking like a teenager just entering puberty.

Geithner didn't offer a plan yesterday so much as a new faith-based initiative that is more notable for what it doesn't do than what it does. It doesn't impose pay limits on bankers and it doesn't provide any means to assure that they start lending in exchange for billions in handouts. What Geithner's plan, such as it is, would help accomplish is to create a new class of welfare kings, living high on the federal dole even as they tout the virtues of the free-market economy.
Obama set the stage for Geithner by making a big deal at his press conference Monday about not wanting to release any details about the bailout so as to avoid bigfooting Geithner. But what on earth was Obama talking about? Now we know that there weren't any details for Geithner to spill in the first place, which is giving everyone else the willies. Maybe it's no wonder Geithner was suffering from stage fright.

Today Wall Street executives will be grilled in congressional hearings, but it won't amount to much more than theater. The moment, though, for theatrics has ended. It's time for the administration to start acting decisively to revive a prostrate economy or watch its fearful audience start to rush toward the exits.

As the stock market plunges, as unemployment soars, and as banks fail, who has President Obama selected to revive the economy? Henry M. Paulson's mini-me, Treasury Secretary Tim Geithner. It's becomin...
As the stock market plunges, as unemployment soars, and as banks fail, who has President Obama selected to revive the economy? Henry M. Paulson's mini-me, Treasury Secretary Tim Geithner. It's becomin...
 
 
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SeenItBefore
Ya want to super size that?
05:44 PM on 02/12/2009
Geithner should have never been! Appointing a tax evader to Head of Treasury is, well, you know. But allowing a protege of Paulson and an ex-head of a Federal Reserve branch, not to mention an advisor to the previous administration and one of the architects of Bush's wonderful economic success story, to determine who gets free money is crazy!

The minute he admitted he didn't pay his taxes and Obama refused to say, "Take a hike!", I realized a lot of people wasted their votes. It's sad and it's politics.
01:40 PM on 02/12/2009
among the worst ideas this week, but this concept oddly has been subscribed to by many. i wonder what people who believe this would say if geithner had outlined the plan (which may include some tough love) and the market dropped 1000 points or more. chillax people. we have parallel economic problems, a serial congress, republicans teabagging, and no consensus on what stimulates the economy the best. please direct your angst at the people who caused this -- home loans schemers and the people who lied on mortgage apps (a crime, i believe) to get a nicer house -- not the people devoting their life to fixing the mess. perspective, sometimes, is nice.
12:31 PM on 02/12/2009
His abilities as an orator are of little consequence. The fact he is nothing more than a Rubin acolyte, that is, one of the folks who allowed this mess to grow over the past ten years, is of great consequence.

Why are the principals, the big leaders of Obama's economic team all the folks who helped the financial sector work the system, bilk the public, steal our savings, and destroy our financial infrastructure?

Yes, Obama had better change these folks out.
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HUFFPOST SUPER USER
racetoinfinity
racetoeternity
05:32 AM on 02/13/2009
You bet, and your question is a very good one. Why were Geithner and Summers both architects of the merger between banks and investment houses, Rubin acolytes, as you said EVER APPOINTED by Obama?! Is Obama beholden to and/or bedazzled by the plutocracy?
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JimR
12:09 PM on 02/12/2009
Geithner has to go just because he gave a bad press conference? Are you kidding? He is not there to entertain you, or even to make you feel better. By all accounts, he understands how we got in this mess better than anyone. Let's give the man a chance to do his job before we throw out the mob mentality judgments.
05:52 AM on 02/12/2009
After eight years with foxes in charge of EVERY henhouse........
We have Geithner in chage of economic policy

Change I DON'T believe in
tm
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HUFFPOST PUNDIT
Carolab
Walking an 87-year-old in the sand isn't easy
01:42 AM on 02/12/2009
Yes he MUST.
11:22 AM on 02/12/2009
Oh, please, give me a break, people. Obama hasn't been in office a month yet and this sturm and drang is absurd. Give Geithner a chance and give them time to detail tactics. Obama's lengthy remarks at his press conference may have raised expectations for the roll out beyond rationality, but I, for one, am pleased that they didn't do what the Bush administration did with the first draft of the TARP legislation, a result of a "ready, fire, aim" strategy.
11:27 AM on 02/13/2009
Wait a minute, did you not know that Geithner along with Paulson crafted the TARP? And he's been in the Fed for years. Couple that with being a tax cheat (you or I would be in jail), I can see no way to have confidence with this person. He brings an awful lot of baggage--bad baggage. I am very disappointed in Obama allowing him to stay; he should have been booted because there are many other people qualified to hold this Post.
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HUFFPOST SUPER USER
munki
Global to Local now Local to Global
12:32 AM on 02/12/2009
Some people with intelligence may not be a good speaker...
Wait and see...
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HUFFPOST SUPER USER
sunny123
so.....it's empty
11:48 PM on 02/11/2009
We have let a fox loose in the henhouse. All of these bankers are friends of his. Why would we think he would work for "we the people" against his friends. They are all greedy wonks and need to be replaced by real people and understand the problems instead of creating more.
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HUFFPOST SUPER USER
peacegurl48
08:04 PM on 02/11/2009
It is fascinating to see the amount of scrutiny for Obama's appointees where was it when Bush appointed buffoons and criminals? A spouse having "tax issues" is a major issue yet it was ok for Cheney, Rice, etc to be in bed with the oil companies.
Many think that Geithner has the skills so perhaps he should be given a bit more time; I don't believe that Obama will keep ineffective people in his administration...he gets how serious the economic crisis is.
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Kassandra
Idiot savant artistic genius
10:02 PM on 02/11/2009
Hell, Bush's appointees broke the law right out of the dugout by not recusing themselves from their corporate boards. Rice - Exxon, Cheney - Halliburton. Even some Senators; Frist - Humana and many many more. Rumsfeld was still a share holder in that medical company that produced the bird-flu vaccine....remember the bird flu scare a few years ago? Sure made HIM alot of $$$. I beleive the stock in that company went up after the propa.... er...scare from about $5 to $39 somewhere in there.
That's illegal folks. Has a tendency to help along no-bid contracts and such. Nobody said a word, did they?
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leftLibertarian
reefer+java=groovy
07:46 PM on 02/11/2009
Yes Jacob. He must go. Geithner only cares about his Wall Street buddies.
07:39 PM on 02/11/2009
Geithner is not the problem. Geithner is Obama's minion.
Obama nominated Geithner, defended him, pushed him.

If you don't like the policy, blame it on Obama.

If you didn't like the previous administration's policy, you blamed it on Bush. Turnabout is fair play.

No way did Geithner do this on his own.

I think the approach is totally wrong.
I think it is pure theft to take our tax dollars and invest in particular companies to support their shareholders.
I think these bankers have proven that they cannot be trusted to behave responsibly. They are detestable.

And, I think it pretty cowardly for Obama to leave it to Geithner to deliver the message that more than a TRILLION dollars will be given to the contemptible, deceitful bankers.

All that being said. This is all Obama's doing. Not Geithner's.
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Kassandra
Idiot savant artistic genius
10:05 PM on 02/11/2009
We'll see what Congress does about this. After hearing Barney Frank on Maddow tonight, I think we will be seeing some serious oversight whether Giethner/Obama wants it or not.
Welcome back to co-equal government, America!
11:09 PM on 02/11/2009
Excuse me, but it was President Obama's idea for serious oversight to begin with. He has commuicated that to everyone in his administration including Geithner. I saw Barney Frank on Rachel tonight also, he is posturing for the camera because he knows that is what the public wants to see.
10:52 AM on 02/12/2009
Those of us who have to sublimate every despicable thing they have ever done or want to do into hatred worship Bush. They know him for what he is, and he is them! He is their redemption, proof positive that the world is but a stage, and role is reality.

They are clustering about their cause now, a rag-tag army huddled about their media campfires. Everything Obama does right is an affront to Bush -- to them. Everything he does wrong is ammunition. Immersed in a reality of their own making, urging each other on, theyr'e doing everything possible to make their reality ours. They are Al-Qaida in America.

Don't trivialize the hatred. Understand it for what it is and challenge it.
06:50 PM on 02/11/2009
Delighted! First time I've been able to post in many months..... I've been glitched out of participating...... Like I said 4 months ago, The government has hammered in inflationary influences like never before to deal with out-going tide, and the government has rivited in recessionary influences to deal with in-coming tsunamis of leveraged debt. The consequence is that in their perceived urgency to "not do nothin'", they have sealed and cemented into place an absolutly immovable monument of STAG-FLATION !!!!!!!! THE GOD-MOTHER OF ALL GOBSTOPPER STAG-FLATIONS. Congratulations to Greedy, Greedy Wall Street aided and abetted by incompetent, incompetent Congress.
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HUFFPOST SUPER USER
dadw5boys
Disabled Vietnam Vet
06:37 PM on 02/11/2009
YOUR WRONG PERIOD!!!
]
Geithner DID IT RIGHT !!!!!!!!!

He did not pick winners or losers !

He left the ball in the banker court to fix the damage that credit swaps and predatory lending caused !!

Geithner made the U.S. Treasury the lender of last resort !!!!

Banks are not going to be hiring but banks must work thru all the bank loans they have !

Geithner handeled things correctly. Setting up a firewall but not being the dunce to take all that bad paper.

Banks need to call the FBI often and have the Collusion and Fraud investigated !!

Then Banks need to hold tight to some ETHICS !!!!
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leftLibertarian
reefer+java=groovy
07:46 PM on 02/11/2009
He did it wrong. Let the banks go bankrupt.
11:22 PM on 02/11/2009
Why do you think they are trying to keep the banks from crashing? They are listening to the smartest economists in the country and they are afraid if the banks crash, within 24hrs our economy will crash and then the global economy will crash. In this world we are all dependent on one another. This is what they fear. Do you think they are doing all this just to save the bankers? Can you really believe all these people are that stupid? There is no certainty that they will be able to hold it together, it may go down any way, in which case half of us will be wrong and the other half will be right but I wonder if anyone will care who was right at that point.
11:27 AM on 02/12/2009
That's what Hoover did and look where that led us. What is wrong with taking a position in the banks with taxpayer money? What needs to be done is what they are doing, with an RTC type approach. It took a while back in the 80s, but the taxpayers got a decent ROI, or at least a much better one than they would have without action. What kills me is the GOP ranting about spending when they handed Obama the largest deficit in history when they ran Congress and the WH for six years and helped bring this crisis on.
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HUFFPOST SUPER USER
jcwtts1
Elections have consequences
05:57 PM on 02/11/2009
so, one press conference and the guy should be fired. And the next guy, how many press conferences does he get, how many bad market days does he get. You have the nads to blame Giethner for the madness of Paulson and Bush. Where were you calling for the impeachment of Paulson as you hysterically calling for the sacking of a guy who has been on the job for two weeks. I would treat wall street the way they treat everyone else. I'd offer them pennies on the dollar for the toxic assets and tell them to fail otherwise.
06:37 PM on 02/11/2009
Mr. Heilbrunn must have been watching the wrong press conference. Because his voice cracks?
Really? He gives one speech and you decide he's all wrong. Are you an economist? Do you have the answer? I think the man is really putting in a lot of work on this. He knows what terrible shape we are in and I do not think he is taking it lightly. I would not want to have the job he is facing, but, for goodness sake let's give him the opportunity to do it.
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dizmo4
05:54 PM on 02/11/2009
As for the criticism of Geithner, give the guy a chance.

So he isn't as articulate or charismatic as Obama. Who is? He was nearly unanimously approved by both Republicans and Democrats and there is a consensus that he's one of the few people that truly understand this mess. 99.9% of people criticizing his plans or him, don't have a real idea of what is actually wrong. They've heard sound bites or 2 page articles summarizing what others THINK is happening. Those that do understand whats going on quickly realize that they don't know as much as they thought. The reason that wall street has gotten away with so much is because most Americans don't understand what they actually do.

Geithner is one person that, I believe, does understand this. He's not perfect and would not be my first choice but I do believe he has a better grasp on this entire situation that anyone else. He's not Paulson. He , at the very least, deserves a chance to put his programs in place.

Nate silver has a good posting about this:
http://www.fivethirtyeight.com/2009/02/give-geithner-break.html