Tuesday, March 3, 2009

Sec. of Treasury Tim Geithner Under Attack

Timothy Geithner is getting a bum rap.

When he was introduced in November last year everyone applauded and said it was a brilliant pick.

STOCKMARKETS soared on Friday November 21st when investors learned that Barack Obama would nominate Timothy Geithner as his Treasury Secretary.

That was from the Economist, and it goes on to say "Timothy Geithner is a seasoned crisis manager with a temperament to match that of Barack Obama". From the same article.

The 494-point (6.5%) jump in the Dow Jones Industrial Average is more a statement about investors’ anxiety over the unsettled state of economic policymaking. News of the Treasury nominee holds out the prospect of a more coherent and forceful approach to the crisis. The current treasury secretary, Hank Paulson, is reworking the $700 billion bail-out plan on the fly, policymakers are struggling over a new approach to foreclosures, the status of the mortgage agencies, Fannie Mae and Freddie Mac, is in limbo, and Congress has just sent the carmakers, teetering close to insolvency, home empty handed. The two months before Mr Obama is sworn in seem like an eternity.

So, as you can see, on Nov. 22, 2008 the Economist felt that Tim Geithner was a great choice.

Here's what ABC News had to say on their web site on Nov. 21, 2008 regarding the Geithner pick:

Pending Senate approval, Geithner will take over one of the most important cabinet positions as the country struggles through a financial crisis and what could be a lengthy recession.

Stocks soared late this afternoon when news reports first started to surface that Geithner's nomination will be made official Monday. The Dow Jones industrial average ended the day up 494.13 points, or 6.5 percent.

It was very good news after two dismal days on Wall Street. Obama's Treasury picks seems to have pleased many investors who are apparently happy with Geithner's familiarity with the markets.

If you examine the life story of Geithner you may think he and Obama are brothers, separated at birth.

So, once again you see a very favorable review.

It was the same with the International Herald Tribune, the world view of the NY Times.

Now, I am hearing from my TeeVee Machine a different story. This morning the Joke of the Morning, and we all know who he is... keeps repeating he wants to fire him. Also, it's too bad he is dead. Of course, I don't put a lot of credence in what Joke says, but a lot of people do, or so I guess.

I think we have to start talking about this and doing a counter plan. I really believe there is a plan to talk the markets and the economy down. Think about it for a minute.

Do you ever hear ANY republican or conservative say anything good about the economy or the stock market?? Do you ever hear them say it is going to get better??

But they all keep saying that Pres. Obama has to be positive and talk up the economy. It is his fault the market is down. It is Tim Geithner's fault the banks are not doing better. He made a terrible presentation of the bank plan.

Larry Kudlow wants him to resign. Who is Larry Kudlow?? One of the loud talkers on CNBC, where so many people go to get their stock market and financial advice. Oh, and now he has announced he will probably challenge Sen. Chris Dodd for his Senate seat. As a republican.

Kudlow is also one of the people who is pushing the Santelli rant. We all know who Santelli is.. the reporter/trader who stood in the middle of the floor in the Chicago Board of Trade and challenged Pres. Obama. Then went on G.Gordon Liddy's radio show and said Robert Gibbs "threatened" him. He was scared, he claimed and his kids were afraid to go to school. Right...

Jim Cramer is another one. He constantly complains and blames Geithner and Pres. Obama for everything. Even though the entire worlds economy is faltering. It is Pres. Obama and Geither's fault.

Not long after Sec. Geithner unveiled his Bank Rescue plan here, he left and went to Rome where he met with the other leaders in the G-7. There he revealed to them the plan and discussed what he had in mind for the banks and how to help our economy.

It was well received and went over very well. However our media has never really reported on it. From the Washington Post:

Going into the meeting, Canadian Finance Minister James M. Flaherty called the U.S. financial rescue "less than clear," echoing comments made by financial chiefs in France and Germany. Afterward, many of the officials appeared reassured, saying that Geithner provided clear answers to their questions.

Several officials said Geithner was particularly helpful in explaining how the various elements of the administration's initiatives tie together as well as how he plans to combine public funds with private resources to get more bang out of every rescue dollar the governments spends.

"What Tim Geithner wanted to do is set out the framework in which he's operating," Britain's Chancellor Alistair Darling said in an interview. "But he's made it very clear that he sees the urgency of this." Darling told a group of reporters: "It's quite clear that the new American administration is getting into its stride, it wants to make a real difference not just for Americans but for the wider world."

These articles are there, but sometimes you have to dig for them. Maybe it isn't that his plan was not detailed enough here as our so called financial experts have said, maybe it is that they didn't want it to be.

Maybe it is not what they wanted, because if it all works out like Pres. Obama and Tim Geithner and all the rest of his team have put it together and have planned, then the Democrats will have won again and it will be the end of Reaganomics and the end of the so called "conservative" tax cuts.

Bloomberg also wrote that his answers were clear and detailed and they were happy with everything they heard.

Geithner answered questions from G-7 officials “very clearly,” Finance Minister Christine Lagarde told reporters in Rome yesterday. “On paper it looks great,” said Lagarde. “The essential thing is now to implement it.”

More details on a public-private partnership to buy banks’ illiquid assets will be delivered in coming weeks, a U.S. official said in Rome on condition he not be named.

Geithner’s plan to tackle the U.S. credit crisis also includes additional injections of capital into financial institutions and as much as $1 trillion to promote new lending to consumers and businesses.

So, we have to do something to help the President and Sec. Geithner. I think they are under attack from the right wing nut jobs.

We have to stay positive, we have to talk it up. We have to keep our eyes on the ball and start looking and searching for these positive stories and not just reading these negative stories that are in the forefront.

I think Sec. Tim Geithner will be fine, if we give him a chance and if we can get these jerks from the right wing to leave him alone. Remember they have had free rein for 8 years. Their very existence is threatened, so they have to attack, and that is exactly what they are doing.


Vast said...

Geithner's problem at the moment is the lack of appearing on top of the situation. He seems to be locked behind a closed door somewhere. He needs to be far more public about what is planed and what is being done. In times of crisis people want a leader that is up front and out front, not hiding in a locked room somewhere avoiding the press.

Patricia said...

Well, a lot of people are eager to pass the blame along and maybe are jumping the gun a bit. I think it's going to be a while before the Obama administration "owns" this economy, as opposed to taking responsibility for it now. I guess Geithner hasn't been an effective front man, but that's not his most important role.

Mostly I think that the Obama people are pretty good at riding out rough spots, but expressing support has to help. I'm sure there will be cabinet changes down the road. There always are. 24/7 cable requires breathless reporting of every little glitch, though.

Vast said...

Being an effective front man for the fix of the economy is very important. People need to know that help is on the way. That the government is trying to effect a correction. Watching Geithner doesn't give me a sense of help is on the way.

Patricia said...

It is very important, but not every member of the administration can be in that role. Keep in mind it's relatively unusual to have the smarts and the delivery. That's why if someone does they can get elected president. Some people get elected president without having those qualities. When it comes to the Cabinet you absolutely have to have people with the smarts and someone else might have to be in charge of delivering the warm fuzzies.