Only in the delusional bubble of Washington, DC could confirming Jack Lew as the new Secretary of the Treasury make sense. But that’s what the Senate just did.
Wall Street is the Canadian Mounties of money. They always gets their man at Treasury.
There continues to be a firm belief among the DC political class that more of the same – another Wall Street lapdog or deep insider – is the way to go, despite plenty of evidence that the economic path that we’ve been on since the Reagan years is a dead end.
In the imaginary world of DC, the wealth gap either is ignored, or it matters so little that they all think hiring another Wall Street guy (and they’re always guys) makes perfect sense. Despite wealth inequality that is on par with China and African dictatorships, the DC world expresses little concern with promoting and confirming someone who has been as deeply involved in offshore money as anyone.
Among the privileged class of Washington, stashing money in the Cayman Islands won’t disqualify you for the job. Oh sure,President Obama talks about how bad it is but then, surprise, he hires the guy and then promotes him. It’s a strange way to take a problem seriously.
Our wealth gap is at embarrassingly high numbers, but never mind, Wall Street needs a friend, and a hug, in DC. Everyone’s forgotten about what we’ve been through, spending hundreds of billions to save banks that are supposedly too big to fail. No harm, no foul – except there was harm, a lot of it, and it continues to this day.
Back in the bailout days, the banks also had a man in DC to save them. His name was Hank Paulson, former Goldman CEO. Jack Lew may not be of the same corporate upper echelon as Paulson, but he’s no slouch. Being a friend of Robert Rubin, the guy who ushered in the final nail in the coffin for deregulation, brings rewards.
Take a guess who will lose out as Washington decides who is going to get stuck with the bill for the drastic cuts being considered in the sequester? No matter how much money or how many jobs Wall Street loses for the US, they still will always get their man in Washington.