Monday, November 24, 2008

Geithner - The Consumate Crony?

In this environment I completely reject the status quo. I am looking for some semblance of leadership to emerge in the United States. We can each do our part but I would like to see transformative change embraced in our elected leadership. But, rather than stratagem I want to see quantifiable actions.

I'm sure Tim Geithner is a fine person. But, he is an immersed bureaucrat. His achievements appear to be solely based on relationships with the power elite rather than through intelligent judgement. Were there even some middle ground, I could be more optimistic. Geithner is part of the problem. His resume is littered with the who's who of cronyism rather than any meritorious accomplishment. You remember merit? It's how a free market is supposed to work.

The President of the New York Federal Reserve is charged with regulatory oversight of Wall Street. Geithner presided over the biggest regulatory failure in history. In any industry. And, he did not say or do a thing until the seeds were already sewn and the disaster was upon us. Then in fine bureaucratic form he delivered speech after speech on the need for regulatory reform. Is this the sign of intelligent judgement? Of a person who should lead the U.S. Treasury for the next four years?

Why did the market rally with Geithner's appointment? Well, it may have more to do with witching week than Geithner but another reality is that Geithner has been Wall Street's lackey. Someone they can manipulate and control. Don't take it from me. Read the very forthright article on Geithner over at Portfolio. In the article Geithner is labeled as "perma-establishment". As having his path always created by a well-connected mentor. I couldn't agree more. Is this the type of critical thinker the U.S. needs in the role of Treasury in a crisis of confidence and the largest financial crisis in this country's history? Do we need a Treasury secretary who himself embodies the crisis we now see?
posted by TimingLogic at 11:10 AM

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