Geithner 2.0 debuts on Hill, sinks claws into congressman
Well, you had to know that on the day Salon posts its Sexiest Man Living, I'd be doing a Tim Geithner post, right? But I come to study Geithner, not to ogle him*. He's having another extremely rough week, as both a Democrat and a Republican have taken to the public forum to demand he loses his job: one on MSNBC Wednesday night, and one to Geithner's face.
First, on Wednesday night, Representative Peter DeFazio (D-Ore., and also my congressman) went on "The Ed Show" on MSNBC and in a nicely staged interview [transcript] said he thinks "Timmy Geithner" should lose his job. The reason? Oh, so many reasons, said Mr. DeFazio: there was this AIG scandal, see, and Tim Geithner wouldn't answer DeFazio's question about some of Goldman's swaps, and also, there's this extra TARP money left, and Geithner won't hand it out to non-financial institutions, and also, there are businesses in his district that can't get a loan. Also, it's so much fun to make the Treasury Secretary sound like a twelve year old. Timmy? Really, Petey, you wanna go down that road?
DeFazio later did a brief Q&A with the Wall Street Journal, where his concluding point about why Geithner should resign is that Geithner serves Wall Street, will always serve Wall Street, has always served Wall Street, named his children after Wall Street, eats Wall Street Wheaties for breakfast, etc. etc.
OK. No one should really be surprised to hear Peter DeFazio calling for Tim Geithner's head. It's kind of like hearing Dennis Kucinich call for a Department of Peace -- two parties, inevitably at odds, continue to disagree. Still, it made the headlines (including at the WSJ, where it's the fifth-most-popular piece today), in part because DeFazio seemed to imply he had a bunch of colleagues who were with him (something he backed away from in the WSJ piece).
By far the more interesting of these exchanges is the one that happened in yesterday's hearing before the Joint Economic Committee. Ranking Congressman Kevin Brady, R-Texas, had about a 2 minute speech detailing the failures of the the Obama administration's economic policies broadly and Geithner's role as "point man" personally. He quoted DeFazio's call for Geithner to resign and then, at about 2:30, got to his own point:
BRADY: Conservatives agree that, as point person, you've failed. Liberals are growing in that consensus as well. Poll after poll shows the public has lost confidence in this president's ability to handle the economy. For the sake of our jobs, will you step down from your post?
GEITHNER: Congressman, I, it is a great privilege for me to serve this president, and I am grateful for the chance to address the range of concerns you said -- I agree with almost nothing of what you've said, and I think almost nothing you've said represents a fair and accurate perception of where the economy stands today. Now, I think that, it's important to start -- welcome the advice, that you're providing, after you gave this president an economy falling off the cliff, values of American savings cut almost in half, millions of Americans out of work, again, the worst financial crisis that we've seen in a generation --
BRADY: Remind me, Mr. Secretary, what post you were holding, when President Bush left office?
It devolves from there into a pretty fantastic tussle that went something like this:
BRADY: Isn't it true that everything is all your fault, you ridiculous corrupt Wall Street banker Democrat Treasury Secretary who hates Americans and jobs?
GEITHNER: Isn't it true that everything is actually your fault, you Republican Bush-supporting sneaky snake of a CONGRESSman who hates Americans and jobs?
It's kind of an old argument. What's new? This is not the Inaugural's Geithner. This, my friends, is Fiesty Geithner 2.0, a Geithner who's been through both the wars and the P.R. bootcamp that follows them, a Geithner who knows the party line and is now owning it. Who broke the economy? Give you a hint: it's someone who, according to Geithner, is guilty of "eight years of basic neglect of basic public goods, in health care, in education, in infrastructure, in how we use energy." Rhymes with "W."
When did kitty grow some claws?
Maybe around the time that congressmen started making ridiculous charges, like DeFazio's charge that Geithner and Co. have held onto the TARP money with some outlandish idea that they might use what's leftover to pay back, well, the initial loan. Crazy talk! Return money without spending it? WTF, Geithner? Pandering to your conservative base a little too much?
Except, oh, wait, according to Mssr. Brady, they hate your guts, too. If a man's being attacked from one side for not spending enough and from the other for spending too much, too recklessly -- is he actually getting it right?
David Brooks -- and whoa, do I hate to have him as an ally -- says yes in a column in today's New York Times:
So... why is there a dual attack on Tim Geithner around the same time that some are concluding maybe things have actually worked out? Maybe it's because if Tim Geithner got things right, then some of the folks who were calling for his head from Day 1 have gotten things wrong. What an awkward place to be in, particularly if, like my congressman, you voted against the stimulus bill.
Mr. Brady, who voted for TARP, does have a point when he says, at the end of this clash, that those responsible -- in this case, he means Geithner -- should have to offer their excuses "to the millions of American who no longer have jobs because of your decisions... At some point you have to take some responsibility for your decisions."
Indeed. I know it's a bitter pill to swallow, but I don't think Congressmen are getting anywhere by trying to point their fingers at the Treasury Secretary who wasn't Treasury Secretary during the initial bailout as its great, singular villain. They were there, too. Good on Tim Geithner for pointing a finger back at them.
* Nor will I ever.

Salon.com
Comments
He did what had to be done, got it more or less right, but does not set the tone we need to see at Treasury. I don't think his situation is so severe that he should resign immediately, but I think he is the wrong guy for the job.
I don't have much confidence that he can lead any effort to regulate Wall Street effectively.
Steve, I totally believe there are legitimate arguments to be had about his handling of the job; I've just yet to be convinced that they're extraordinary arguments that should result in his firing. But your rational reasons are a step above what I've seen lately. Thanks for the comment.
Bernanke and Geitherner want to hand out 9 trillion in loans and giveaways according to Bloomberg, and consistently refuse to tell us who is getting what. If they are not criminals, why the demand for secrecy? The lack of accountability or oversight?
That Bush & Co. screwed the economy and that Geithner screwed up in his role in the bailout are not mutually exclusive statements. The first is undeniably true. The more info that comes out about Geithner's role at the NY Fed, the worse he looks. If the audit of the Fed happens, I greatly suspect Geithner will come under even more harsh criticism.
Basically the man is stupid, as most congresspeople are from texas, so to find that all he can do is defend chimpy and demand nothing, more except more missiles/fences/troops/machine guns/cameras/tanks on his southern border, is very predictable.
Also, the man CAN BE BOUGHT (as in BRIBES) for a reasonable price by most church organizations, medical insurance companies and big oil....Look it up...
Pres. Obama's appointment of Geithner was the right move at the time, given his very limited options. He had to have someone who had been close enough to understand the mechanics of what happened in the last administration. The hard part for both of them is that it isn't enough we have demanded that they raise and restore the dead economy, but that they do so under fire from all sides and in front of and for a crowd who isn't all that appreciative and would rather hurl feces than be a part of the solution. I'm glad to see Tim Geithner biting back at the back biters.
Remember:
Should I write my Congressman?
A Congressman has two ends.
The 'Thinking" end and the "Sitting" end.
Since his whole career depends upon his seat, why bother, friend.
"BILL MOYERS: Let's look at this story that I just read from the Associated Press this week about how Treasury Secretary Geithner is on the phone several times a day with a select group of very powerful Wall Street bankers, especially Citigroup, J.P. Morgan, Goldman Sachs. He will talk to them when Members of Congress have to leave a message on the answering machine. And these are the bankers who helped bring on this calamity and who are now benefiting from it. What does that say to you?
MARCY KAPTUR: That says to me that Wall Street and Washington is a circuit. And because Mr.Geithner headed the New York Fed that that historic relationship, unfortunately, continues. And it gives them special access and special power to influence policy.
SIMON JOHNSON: Well, I think it really tells you how the system works. The system is based on access and is based on what on Wall Street shaping Washington's view of what's important.
It's the people who are very close to Mr. Geithner before when he was the head of the New York Fed. Before he became Treasury Secretary. These people have unparalleled access. And in a crisis, when everything is up for grabs, you don't know what's going on, the people who will take your phone calls, right, in government and people who are going to be standing in the oval office, making the key decisions. That's the heart of the system. That's the heart of how you get your agenda through, by changing their worldview. "
-----------------------
During the Bush administration, many of us were concerned about the relationship of members of the administration to the energy industry. And that concern was all about access and influence.
Question: don't we have very much the same situation with the Obama administration with respect to Wall Street?
You say "So... why is there a dual attack on Tim Geithner around the same time that some are concluding maybe things have actually worked out?"
To the extent that things have "worked out," they worked out in a particular way due to the influence that Wall Street and the large banks have in the administration. Surely they could have worked out differently, though in what way we'll never know. I mean, one could also say that the Bush energy policy "worked out."
I've heard partisan arguments from both sides on OS (well, only liberals). What I've yet to hear is a strong defense that printing off your own currency can save your economy. For the nth time, pointing to recovery numbers is pointless, those numbers are relative to an old "money supply" and the numbers are only higher due to borrowed money! That's not growth!!!! Look at the numbers relative to gold or stable commodities if you want the real numbers.
The solution to our woes is to liquidate toxic assets, end our wreckless spending on this evil, unwinnable foreign policy (in which Obama has shown himself to be every bit as bad as Bush), and deal with the consequences of our reckless borrowing over many years (instead of propping it up again and again). Restricting the Fed's power to expand the money supply would be of great help, as well.
Here's hoping that when (if?) the audit of the Fed comes, Geithner will take more crap once the American where all that money really went.
Anybody that opposes those measures opposes a real recovery.
My question is this? If JFK put us back on the Silver Standard, why are we not on the Silver Standard? Why does the Fed have such a problem with accountability? Rhetorical questions, to be sure, since Timmy-boy isn't about to engage in answering those questions in any way understandable by ranking economists. His continued use of twisted double-speak speaks for itself.
Geittner 2.0 has too many bugs in it.
November 12,1999 is the date that Bill Clinton signed the repeal of Glass-Steagall and the CURRENT economic mess was 100% predictable BEFORE Glass-Steagall was repealed.
November 12,1999 is the date that Bill Clinton signed the repeal of Glass-Steagall and the CURRENT economic mess was 100% predictable BEFORE Glass-Steagall was repealed.
People who say that are implying, unless they also state the context which this person doesn't, that the repeal of GS was a Clinton vehicle. It wasn't is was brought to us by a Right Wingnut Congress and Gramm, Leach, and Bliley as head Wingnuts. Keep your facts straight.
As to Brooks: SS should mention that on the opposite side of the page (dead trees version), Krugman makes a better argument that Timmy is culpable. I side with Krugman.
From the time that Glass-Steagall was passed until 1999 EVERY time that the Fed did an end run around Glass-Steagall the economy tanked. It's a FACT. It matters not whether the idiots who allowed it were Republican or Democrat... 100% of the time when Glass-Steagall was messed with the economy tanked. That's WHY it was 100% predictable that when it was repealed (REGARDLESS of which idiots created the legislation OR which idiot signed it into law) that the economy WOULD tank.
Are you FAMILIAR with the following phrase: "Those who fail to remember history are destined to repeat it"? HISTORY told us that repealing Glass-Steagall was STUPID. HISTORY told us that repealing Glass-Steagall WOULD result in the economy tanking. How STUPID do you have to be to NOT KNOW that repealing it WOULD cause the economy to tank?
Might I SUGGEST sir, that instead of READING INTO what someone else says you ASK them about it rather than demonstrating abysmal ignorance and putting words into their mouths that they never said NOR implied. You might ALSO want to check and make sure that the person that you are accusing isn't someone who uses English as a SECOND (or, in my case THIRD) language.
As I said, impuning Clinton solely in your statement, you are implying that he was responsible for the repeal of GS. That is simple lexical parsing. And it is devious.
This diary is just an unusually circuitous and deceptive set of excuses for Obama and Geithner.
"Geithner got things right!"
Harharharhar!!!
Is "Saturn Smith" a tool for Obama, or what?
Meanwhile, back in reality, in his most recent column, "The Big Squander," Paul Krugman describes the stupid mess that out stupid, weak, deceitful President and his idiot-boys Geithner and Summers have made for the rest of us.
"For the economy is still in deep trouble and needs much more government help. Unemployment is in double-digits; we desperately need more government spending on job creation. Banks are still weak, and credit is still tight; we desperately need more government aid to the financial sector. But try to talk to an ordinary voter about this, and the response you’re likely to get is: “No way. All they’ll do is hand out more money to Wall Street.”
So here’s the real tragedy of the botched bailout: Government officials, perhaps influenced by spending too much time with bankers, forgot that if you want to govern effectively you have retain the trust of the people. And by treating the financial industry — which got us into this mess in the first place — with kid gloves, they have squandered that trust."
But instead of quoting Krugman, "Saturn Smith" quotes David Brooks, and then pretends to be horrified that he, Brooks, and Obama are obviously on the same side of this ridiculous mess.
What a tool!
http://joshfulton.blogspot.com/2009/11/what-is-us-doing-with-irans-frozen.html
Obama's blind faith in geithner"
geithner has a big/impressive resume, but its increasingly apparent, is not the man for this job.
yeah, kind of... I would say Geithner is Obamas Wolfowitz... and his mistress is Wall St
There is no doubt that the government did this and every branch of the government is at fault. It wasn't Clinton or Bush and it's not Obama. It's all of them.
both Obama and Geitner have said from the beginning that the last thing to recover will be jobs. Expading health care and building backt he infrastructure as to bridges and highways and tunnels etc will add to jobs, funding small businesses will add to jobs. so stop attacking the hand that is feeding all of us . you only make yourselves look rediculous.
And PETEY - Petey, Petey, Petey; what-so-ever would we Oregonians do without our beloved semi-crack-pot Representative peddling his way to work down Pensylvania Avenue?
Don't throw the Baby out with the Bathwater, Petey! Like I said; at least Geithner was calling it straight long before anyone else was, and who better to fix a broken system than the one cog on the wheel that screeched first - and loudest?
Hasn't anyone ever told you that "Yes,you can!" tell something about a person's character by their appearance? Of course, it takes a certain element of maturity and experience to discern that.
It's not that Obama doesn't have discernment but sometimes when you have nothing else but a herd of bs-ers obviously trying to con you into going along with a Bull market for themselves, you take what there is to work with among a tribe that has never discerned your value and you work from there by surrounding them with as much input from their adversaries as quickly as you can.
"More parties" are not the answer to our political quagmire as it exists. When an opposition party has so diminished itself in numbers, with incorrect and discordent values, you finish it off while it is small. The commentators whom this group relies upon are so effete that it is your own best interest to bring this into the light where they can not deny they have looked to advice of facetious incompetents.
And since you already know that David Brooks is treated as a fair-haired boy because of appearances of inherent validity bestowed by the establishment which harbors him when lacking any heavier intellectual input,simply because they no longer recognize what it is when they have equated that with commerce, a pox upon both their houses of commentary. It has already been pointed out that The Business as usual crowd lied from the start of the Bush administrations engagement with War for Profit. They were incapable of forming intellectual opinions of their own as they were beholden to their employers who paid their contracts.
While those of the masses of the right, who like free bus rides to Washington,D.C. to display themselves on the mall perchance to be seen on tv by their relatives or friends in far flung places, rely on that apparent faked-up old middle-class-impersonating personality-type who is in it for nothing but the money that the supposed liberal media is already receiving. What they need is " a good education".
Hi! there: old new lefty. I second the motion.
This is truly a dysfunctional government where nothing is being done to solve the problems facing the American people. None of them say anything about the real causes of the current crisis. It is very sad.
You twist the facts, fabricate your own reality and are totally oblivious to the lives of your fellow Americans. You are a disgrace to this country. Do this country a favor, support the 2nd Amendment, go buy a handgun, point it toward the roof of your mouth, and rid us of the burden of us having to listen to any more of your drivel.
Mr. Brady, thank you for saying exactly how the rest of America is feeling, about the economy, jobs, and the sniffling idiot you were grilling.