Sunday, March 22, 2009

Is Tim Geithner doing a poor job as Treasury Secretary?


This is about a 6 minute discussion by a panel of journalists about the financial crisis and whether it is fair or not to blame Tim Geithner:

Watch CBS Videos Online

My opinion:
1. I think Geithner has definately done a poor job of public relations - I think few will dispute that.
2. I was skeptical of Geithner and lead economic advisor Lawrence Summers being chosen by Obama. I think they have both been too closely with the Wall Street establishment and economic theories that favored massive deregulation. Both of these things contributed largely to the mess we now find ourselves in, and I'm afraid they are not willing enough to propose the radical reform and change that is needed.
The counter-arguments, as I see them, are 1) Coraggio's economic ideas are too radical; and 2) we need people in these positions that are intimately acquainted with the world of high finance and Wall Street.
3. It is too early for Obama to ask Tim Geithner to resign. Just because he has mismanaged a few things, we don't know yet that they are major mistakes that will impact the broader economy. Furthermore, Obama's overall economic plan has not had time to work. As of this Sunday morning, we still owe Obama's team the chance to do it's job.

Bottom line: Having said all that, I think time is running out on Geithner to show the nation he is the best man for the job. He has to both perform well, and demonstrate that he cares about ordinary Americans, and not just the desires of Wall Street and the banking system. He will have his chance this week when he announces more details about the banking rescue plan.

Stay tuned.

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