Joe Cannon makes a compelling case for why the Wall Street protestors should make Tim Geithner’s resignation one of their core demands. He does it, however, without making any argument whatsoever about what Geithner has done wrong. He simply states that he’s been “awful.” It’s more about the symbolism, and I can’t say he’s wrong. I thought Geithner should have resigned once the banking system was stabilized, not because he’d done an awful job but because the whole business was so deeply unpopular.
Part of this is about realistic expectations. I don’t know that we’ve ever had a Treasury secretary who was an adversary of Wall Street. That’s not how our system functions or has ever functioned. The equivalent would be to hire a secretary of Defense who was implacably opposed to defense spending. I wouldn’t object, obviously, but neither is it something I demand or expect.
I can make a solid argument that the real problem is with Eric Holder at the Department of Justice, who hasn’t done enough to hold the banking criminals accountable for their actions. Or I could blame Ben Bernanke, who hasn’t done enough to tackle unemployment. Geithner doesn’t strike me as the most deserving of punishment. But, as a political matter, he’s been a liability for a long time. And he should go.
Forcing him out would establish some clout. So, I can endorse that idea, but it comes with a caveat. Don’t expect him to be replaced by an Elizabeth Warren type. Even if the administration were so inclined, they’d never be confirmed.
Our system may be rotting at its core, but it knows enough not to kill itself intentionally. It won’t declare itself rotten.
Charlie Pierce suggests that Geithner might be useful at this moment, precisely BECAUSE he is cozy with the banks. He’s recently been seen saying things that suggest he’s in agreement with the sentiments behind OWS (even if he rejects some of the demands like the end of the Fed).
Maybe Bob Woodward can write his next book about Holder and the restraint he’s shown in going after the criminals that preceded his tenure, both in the torture state and Wall Street. Was that his call? Or did it come from the White House?
As for Bernanke, he’s taken unprecedented measures to ease the economic crisis. He’s used up all the bullets in his gun and is resorting to spitballs and paper airplanes. But unlike Congress, he’s doing SOMETHING.
If Richard Cordray can’t get confirmed by the Senate, then I don’t know how a new Treasury Secretary gets confirmed either.
P.S. Is it too much to hope that Harry Reid’s actions last night will lead to Senate Democrats overturning executive branch appointment filibusters too? (Okay, it is too much. Still…it would be nice.)
If Richard Cordray can’t get confirmed by the Senate, then I don’t know how a new Treasury Secretary gets confirmed either.
Bullyfiresidearmpulpitchattwtisting. And awesome speeches.
Why, if Obama didn’t hate us, it would already have been done.
He is the man driving too big to fail. His working plan to recapitalize the banks was all on the backs of the consumers.
He will be rewarded when he leaves the administration. Thinking of Peter Orzag.
But he won’t leave until Obama does. I think he was a minder put in place along with a bunch of ex Goldman people to make sure no one is held to account. After all, he was a participant as head of the NY Fed.
I know from 2010 that he is poison to the base. Canvassing for Murphy, I kept running into having to sell my congressman against the failings of the admin’s treasury choice along with rest of the economic advisiors It was a drain on the field forces all over Bucks.
2010 was a perfect storm up here because of other factors as well. In my area (Middletown Twp) the school teachers union is working without a contract for the last 4 years. This has caused a great deal of anti union(at least AFT/NFT) voting at all levels of gov’t. The town supers, the school board, and most of the state reps and senators, along with the congressman are rethugs now.
And don’t forget Geithner’s nickname. “Turbo Tax Timmy.” It obviously didn’t help the President when Geithner still got the job despite being a tax cheat.
Were you thinking of Jeff Gannon?
This guys name is Joseph Cannon.
heh. maybe.
Pretty off-topic, Boo, but I thought I’d mention that the reason I read this blog every day is to see what a more-reasonable version of myself is thinking. Today the more-reasonable version and the real version are pretty much in agreement.
would create the impression of an Administration that is panicking – an awful message to send 13 months before an election.
I seriously doubt it will happen.
Geithner’s appointment was a serious mistake – perhaps in the end it will prove to be Obama’s undoing. But Obama is stuck with him.
I agree with that. The time to replace him now is after the election. That is, that would be the time if Obama were to turn leftward, which I seriously doubt.
I wouldn’t blame Bernanke for unemployment. He’s done about all that a Fed Chairman can do, namely drive interest rates to zero. We should be hearing from the Secretary of Labor. Who is he/she anyway? Can’t remember without looking it up, which shows how he/she has been hiding in the basement. I had no trouble remembering Robert Reich or Elaine Chao.
Agreed about Bernanke. “Helicopter Ben” has been well on the more-aggressive side of monetary policy. What he’s been doing since this recession started is usually known as “putting the pedal to the metal.” Two rounds of QE, plus a big fat 0 on the Fed rate, plus a statement that that rate isn’t going anywhere is a very activist, stimulatory policy.
But if you only read liberal blogs, you’d think he was a tight-money wingnut.
Disagree about the Secretary of Labor, though. Her name is Hilda Solis, and she’s been great, but the Labor Department’s job is mostly about workplace conditions and labor rights, not economic policy.
You only know who Elaine Chao is because she’s Mitch’s bard.
do you mean beard?
You’ve clearly never seen her rock a lute.
Verily.
Because I remember hating her guts
Uhm, you didn’t make a compelling case for getting rid of Geithner either. Nor of Holder. Geithner helped save the economy from total collapse. I don’t know about you but I don’t like the idea of taking down the whole ship just to get rid of the captain. As for Holder, you want him prosecute whom exactly? Most of what happened was LEGAL and you know these guys are lawyered up and cover their tracks. DO you want a show or air tight cases? Also, correct me if I’m wrong but wasn’t the blogosphere reporting recently that a top exec or CEO at Goldman Sachs was lawyering up?
Also is this site a fake or something? Do the indictments and law suits mentioned in the news section not count for anything? http://www.stopfraud.gov/
The ship is going down because the economic growth paradigm has finally met its match – the Earth’s physical constraints (specifically oil). We’re at the end of economic growth, and propping up a failed banking system that is completely dependent upon growth makes no sense. A managed failure of the banks would have been preferable as the first in many steps to transition to an era of economic contraction.
You should look right at the top if you want to place blame for the lack of Wall St. prosecutions, Boo. Did you hear what the president said yesterday about the banks not committing any crimes, only exploiting loopholes? That was really egregious but is par for the (stay the) course. I guess forging documents and stealing homes is a legal loophole to be exploited, not a crime. Who knew? Also, Obama cannot say, “Prosecute him,” but can and will easily decree by fiat, “Assassinate him.” And you guys claim that he’s not an emperor. Ha-ha.
Also, about this whole “jobs” charade. Why is Obama pushing this tepid, tax-cut-laden bill while simultaneously demanding passage of three job-killing free trade agreements that Ronald Reagan would be salivating for? Smacks of hypocrisy to me.
.
See my diary – Obama’s Double Game on Wall Street and Arab Spring
"But I will not let myself be reduced to silence."Thank you, Oui. We’re on the same page.
The President was right.
This is what deregulation is all about – it became legal to do the things that brought down the economy.
The document cheating you’re talking about isn’t what caused the meltdown, but another consequence of the mortgage bubble that did melt down the economy.
Also, Obama cannot say, “Prosecute him,” but can and will easily decree by fiat, “Assassinate him.”
It’s scary how little the difference between guilt and innocence matters to fanatics.
Right back atcha, joe!
Where are the court documents where a real judge and jury weighed the evidence on both Wall St. and al-Awlaki? And if those Wall St. actions weren’t crimes, why is the DOJ feverishly trying to settle?
Courts don’t review targeting decisions in war. Never have, never will.
There have been numerous investigations of financial firms for improper practices, up to and including convictions and jail time. That you don’t know about them is your problem, not mine. That you don’t care about niceties like distinguishing between guilty parties and innocent ones, and are perfectly happy to talk about “Wall Street” as some indistinguishable lump that should be subject to collective punishment, is also your problem, not mine.
Typically, prosecutors work out plea deals because they aren’t certain that they’ll be able to get a conviction if a case goes to trial.
You never answered the question. Or do you forget that President Obama has declared Bradley Manning guilty when there hasn’t been a trial yet?
No, he hasn’t. You’re making shit up.
And I answered every single question I’ve been asked.
Ummm…Obama did declare Manning guilty by fiat. Google search “Obama declares Manning guilty,” and the proof is evident. If you didn’t hear or read about it, it’s because you were too busy chanting “Four More Years”!
Also, the job of the president isn’t to protect it’s citizens; it’s to protect the Constitution.
Noplace in that oath is there anything about droning Americans who “threaten us.”
Ummm…Obama did declare Manning guilty by fiat.
I don’t even know what that’s supposed to mean.
Are you trying to use big words to say “Obama expressed an opinion about the case?”
I am coming around to the view — which I first read on Jonathan Cohn’s blog — that Occupy Wall Street is doing a great service by returning the blame where it belongs, with private corporations and not the government.
Specific demands aren’t needed to achieve that much. Demands could still be quite powerful, but I think something as narrowly political as “oust Geithner” might backfire. Demands specifically addressing the worsening situation of the middle class would be far harder to ignore.
Justice has no time for financial or war criminals. They’re way too busy dealing with reefer madness in California. More fodder for IncarcerationCo.
Stepping on Big Pharma’s profit a little, are we?
This is a stupid demand if they’re demanding Geithner leave now because HE HAS ALWAYS WORKED FOR THE GOVERNMENT, NEVER ON FUCKING WALL ST!!!! His entire career has been spent as a government employee. The only Treasury Secy that GOP would approve right now would definitely be a corrupt lackey. How would that help? FYI Paulsen’s Bush did the major bailout; not Geithner alone, since he was working at the NY Fed.
The Banks could crash any day now due to the severe debt crisis in the Eurozone RIGHT NOW. It could have a Lehman effect on the large banks here in the US. We need Bernanke & Geithner, who have experience, on the job. Geithner wanted to leave in Sept. & since the prez knew he couldn’t get anyone approved; he asked him to stay. I personally think we need experience in case there is a bank meltdown b/c at least they’re familiar with the Dodd Frank Law & how to wind the banks down. It might not happen; but it’s a real possibility, especially if Greece defaults.
This is a stupid demand if they’re demanding Geithner leave now because HE HAS ALWAYS WORKED FOR THE GOVERNMENT, NEVER ON FUCKING WALL ST!!!! His entire career has been spent as a government employee. The only Treasury Secy that GOP would approve right now would definitely be a corrupt lackey. How would that help? FYI Paulsen’s Bush did the major bailout; not Geithner alone, since he was working at the NY Fed.
The Banks could crash any day now due to the severe debt crisis in the Eurozone RIGHT NOW. It could have a Lehman effect on the large banks here in the US. We need Bernanke & Geithner, who have experience, on the job. Geithner wanted to leave in Sept. & since the prez knew he couldn’t get anyone approved; he asked him to stay. I personally think we need experience in case there is a bank meltdown b/c at least they’re familiar with the Dodd Frank Law & how to wind the banks down. It might not happen; but it’s a real possibility, especially if Greece defaults.