Geithner Under Heavy Fire from Critics
The beleaguered Treasury Secretary got slapped around by Congress. “For the sake of our jobs, will you step down from your post?” asked Congressman Brady (R-Texas). "I don't think that you should be fired. I thought you should have never been hired," said Congressman Michael Burgess (R-Texas).
The comments were amplified as it was carried live on CNBC and all the networks and wire services picked it up. Unfortunately for Mr. Geithner, apparently it’s time to find a fall guy for the lack of jobs.
This has gone so far that now they are running JP Morgan boss Jamie Diamond’s name up the flag pole as the potential new Treasury Secretary. While Mr. Diamond is clearly qualified and would most likely do a great job, the mere fact that we are discussing this must give us pause.
To say that Mr. Geithner is the problem here is to completely misunderstand economics and financial markets in general. Clearly politicians—especially the party that’s not in power— have a self interest in blaming others for what’s going on. They know better, but if you want your constituents to think you are doing something, when you can’t really do anything, this is what you do. This is simply the ugly side of politics.
They must think we’re all stupid and we can’t see what’s actually going on. No one should have expected this mess to turn around in the short term. The economy is too big and took too big a hit. While mistakes were made, it was a once in a lifetime disaster, so of course mistakes were made. But Congress throwing stones when they are clearly in a glass house only makes things worse.
Regardless of the validity, which there was little, of their points, the court of public opinion still rules the day. Jay Leno even got in the act quipping, “President Obama is getting ready to pardon the White House turkey, the Treasury Secretary Tim Geithner.” Mr. Geithner better hope so.
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