Sometimes Presidents make horrible cabinet choices.
Bad cabinet choices can wound a good administration or damage one already spiraling down. It is easy to see how it could happen – someone comes highly recommended, with an impressive resume and lots of other credentials. They do well in the interview process and have a good rapport with the President-elect and his trusted aides or maybe he or she is a trusted aid. Given that dynamic, it’s not hard to see why George W. Bush chose Donald Rumsfeld and its not that hard to see why Barack Obama chose Tim Geithner. But in both instances Presidents made tragic errors.
Though I’m sure Bush was warned by people about Rumsfeld, it is well known Obama had a warning almost immediately from Senator Byron Dorgan that Summers, Geithner and crew were the wrong choices for his economic team, from New York Magazine:
There’s a poignant moment of sorts in December 2008 when the North Dakota senator Byron Dorgan implores the president-elect not to go with his economic team. “I don’t understand how you could do this,” he tells him. “You’ve picked the wrong people!” As indeed Obama did, under the tutelage of Robert Rubin, who also tried to finagle a White House guru role for himself, not unlike the perch from which he helped wreak havoc at Citigroup during its subprime orgy
Indeed, possibly the worst mistake of the Obama presidency. Larry Summers and his former Deputy Tim Geithner were the embodiment of the economic establishment that lead to the 2008 financial crisis. In fact, Summers and Geithner lead the campaign to oust Brooksley Born from the Commodity Futures Trading Commission – why? Because Mrs. Born wanted to regulate derivatives thinking they were dangerous and would lead to a financial meltdown. Summers, Geithner, Greenspan and Rubin destroyed Born then supported legislation that further deregulated derivatives. Woops.
Presidents also don’t like to admit they made a horrible mistake (who does really?) and so the most tacit admission is found when they dump people in the second term. This is what happened with Rumsfeld and why Tim Geithner is now, surely with White House consent, hinting he won’t be back:
Treasury Secretary Timothy F. Geithner said he doesn’t expect President Barack Obama to ask him to stay in office if he’s re-elected, and dismissed Wall Street’s concerns about financial regulations.
“He’s not going to ask me to stay on, I’m pretty confident,” Geithner said in an interview with Bloomberg Television today. “I’m confident he’ll be president. But I’m also confident he’s going to have the privilege of having another secretary of the Treasury.”
I’m confident if Obama isn’t re-elected Geithner will be one of the reasons why.
There are many good reasons to dump Tim Geithner like him being a blatant Wall Street puppet, not paying his taxes and being in charge of the IRS, having his fingerprints all over the Bankster give away that has people in the streets…but an even more compelling reason for Geithner to go is this -
What if Elizabeth Warren Becomes a Senator?
No one did more in the Obama Administration to undermine Elizabeth Warren than Tim Geithner.
Treasury Secretary Timothy Geithner has expressed opposition to the possible nomination of Elizabeth Warren to head the Consumer Financial Protection Bureau, according to a source with knowledge of Geithner’s views.
The financial reform bill passed by the Senate on Thursday mandates the creation of a new federal entity charged with protecting consumers from predatory lenders.
But if Geithner has his way, the most prominent advocate for creating the agency may not be picked to lead it.
And having Ms. Warren on the scene — providing an alternative, pro-consumer perspective — may not be to his liking.
President Obama missed his best opportunity to reform the financial system when advisers — including Mr. Geithner – recommended in March 2009 that he defer to top bankers
But forget the backroom, the contention became clear as day during the Financial Crisis Inquiry Commission when Warren grilled Geithner on his role in the bailouts and why AIG received 100 cents on the dollar and why banks are now MORE concentrated not less.
Needless to say relations would be much better between the White House and Massachusetts’ newest Senator if Tim Geithner was not the Treasury Secretary.
The tragedy of time or at least humans existence within it is the inability to go back and fix mistakes. Summers, Geithner and crew were bad choices that not only secured the power of Wall Street to keep putting the country at risk but deeply damaged the public’s trust in the Obama Administration and government generally.
Kicking Geithner to the curb after re-election will not undo what has been unfortunately done, but it will be a good start. What needs to happen for America to heal is not just a repudiation of certain individuals like Tim Geithner and Larry Summers but a repudiation of the philosophy they brought to government – that a Wall Street Elite should ruthlessly operate America for their own interests only stopping to confer with society through its representatives in DC with a check and a message “We own you.”