Arianna on Geithner: Time to take away the keys




I don’t like the idea of piling on our new president so early in his tenure, but Geithner has lost the public confidence. He’s even lost the confidence of Obama’s own top allies and cheerleaders: fellow Democrats who helped put Obama into office. This is just very bad, and getting worse by the day. At this point in politics, it doesn’t matter who is right and who is wrong, Geithner or his critics. We are in the middle of an unprecedented economic crisis. I don’t see how it’s tenable much longer to have a man in charge of resolving the crisis who is increasingly not trusted, respected, or believed. Right or wrong, this is starting to reflect on Obama. And when you start to hurt your boss, in politics, good staff bow out.

From Arianna:

“When you run a Fed bank,” a senior Democratic operative told Chris Cillizza, “you live deep in a cave. [Geithner] just needs to get used to the sunlight.”

But the issue isn’t Geithner’s delivery, it’s what he’s delivering: an approach to the crisis that is as toxic as the assets that have hamstrung the economy. Geithner, brilliant and hardworking though he is, is trapped within a Wall Street-centric view of the world and seems incapable of escaping.

That’s why every proposal he comes up with is déjà vu all over again — a remixed variation on the same tried-and-failed let-the-bankers-work-it-out approach championed by his predecessor, Hank Paulson. For Paul Krugman, this “insistence on offering the same plan over and over again, with only cosmetic changes, is itself deeply disturbing. Does Treasury not realize that all these proposals amount to the same thing? Or does it realize that, but hope that the rest of us won’t notice? That is, are they stupid, or do they think we’re stupid?”…

Geithner’s Masters of the Universe, the people he still thinks are the ones we should turn to to save the day, are the same people who brought us here. And that is why Geithner either needs to go or keep his job but have his authority stripped and transferred to someone who does not share his Wall Street DNA. Call him or her the “Recovery Czar.”

In other words, use any window dressing you want, just take the steering wheel out of Geithner’s hands.


CyberDisobedience on Substack | @aravosis | Facebook | Instagram | LinkedIn. John Aravosis is the Executive Editor of AMERICAblog, which he founded in 2004. He has a joint law degree (JD) and masters in Foreign Service from Georgetown; and has worked in the US Senate, World Bank, Children's Defense Fund, the United Nations Development Programme, and as a stringer for the Economist. He is a frequent TV pundit, having appeared on the O'Reilly Factor, Hardball, World News Tonight, Nightline, AM Joy & Reliable Sources, among others. John lives in Washington, DC. .

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