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Obama's (Rumored) Pick for Secretary of the Treasury Makes Wall Street Happy

Posted by Steve Benen, Washington Monthly at 3:36 PM on November 21, 2008.


He's going to be the Secretary of the Treasury in the midst of a financial crisis, so it's probably worth taking the time to get to know him.
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Of the three apparent cabinet moves this afternoon, we know a lot about Hillary Clinton, quite a bit about Bill Richardson, but comparably less about Timothy Geithner. If he's going to be the Secretary of the Treasury in the midst of a historical financial crisis, it's probably worth taking some time to get to know him.

I've read two solid pieces lately on the likely next Treasury Secretary. The first was back in September, when Robert Kuttner wrote a fascinating item on Geithner's background and expertise.

Unlike many senior Treasury and Fed officials, Geithner is not a high roller from a big bank or investment house but a public-minded civil servant. He has neither a doctorate in economics nor an M.B.A. After receiving a master's degree in international economics from Johns Hopkins University, he worked as a research assistant to Henry Kissinger and then joined the Treasury, where he was posted as an assistant attache in Japan. He came to the attention of both Larry Summers and Robert Rubin and quickly moved up the ladder. He was a key player in the containment of the Asian financial crisis of 1997-1998 and later went to the International Monetary Fund as a top official. Despite being a Democrat, he was named president of the New York Fed after two stronger and more conservative candidates withdrew. 

Geithner's admirers span the spectrum from Republican financial mogul Pete Peterson to liberal Democrat Barney Frank. One can infer from his broad fan base three possible conclusions: Wall Street is so clubby and politically powerful that permissible policy differences just aren't that great; or maybe Geithner is all things to all people; or perhaps, in a deep crisis, truly talented and effective people can earn broad respect.

Perhaps most importantly, Kuttner noted a speech Geithner delivered to the Economic Club of New York last June, calling for a far-tougher regulatory policy to alter "the level and concentration of risk-taking across the financial system." He got quite specific, saying regulators "need to make it much more difficult for institutions with little capital and little supervision to underwrite mortgages." Reassuringly, Kuttner described the remarks as "a blueprint for fundamental overhaul," which is what's necessary given the need for a new financial architecture.

The other piece was Noam Scheiber's recent article, describing Geithner as "the next Larry Summers," and providing some helpful context to Geithner's professional and ideological background. It's well worth reading.

For what it's worth, investors appeared very pleased with word about Geithner's nomination -- the Dow soared nearly 500 points after MSNBC's report made the rounds.

I'm going to go out on a limb here and say Geithner will not have any confirmation trouble in the Senate.


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Why wouldn't they be happy?
Posted by: TheAntagonist on Nov 21, 2008 7:13 PM   
Current rating: 4    [1 = poor; 5 = excellent]
The dude is a FED guy. More free money made out of thin air! Depression here we come! Makes me glad I voted for Obama...

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» RE: Why wouldn't they be happy? Posted by: covalentbonded
Obama's qualification with his new staffs...
Posted by: Quick money loans on Nov 21, 2008 8:08 PM   
Current rating: 2    [1 = poor; 5 = excellent]
Obama wants to know all about you if you plan to work in his Cabinet or staff. Makes sense, doesn’t it? If a person is going to hold a high-responsibility position in America’s federal government, it is in the best interests of the nation and its people that the employee meets the qualifications and not be a security risk. However, it seems to me that there are limits to what is reasonable. With as much information as Obama asks for in his seven-page, 63-question application, you’d think the administration would have enough to perform credit repair for everyone who applies. CNN leaked a copy of the questionnaire, which requires applicants not only to talk in detail about nearly everything they’ve done over the past 10 years or more, but also to do the same for their spouse. Here are a few of my favorite questions. I hope applicants do indeed get free credit repair as part of the deal… (1) Writings: Please list and, if readily available, provide a copy of each book, article, column or publication (including but not limited to any posts or comments on blogs or other Web sites) you have authored, individually or with others. Please list all aliases or “handles” you have used to communicate over the Internet. (2) Electronic communications: If you have ever sent an electronic communication, including but not limited to an E-mail, text message or instant message, that could suggest a conflict of interest or be a possible source of embarrassment to you, your family, or the President-Elect if it were made public, please describe. (3) Please provide the URL address of any Web sites that feature you in either a personal or professional capacity (e.g., Facebook, MySpace, etc.) This only scratches the surface of how deep the application goes. If you’re going to serve under the “change” president and you don’t have all your ducks in a row, you’ll have to change that right away! Imagine this point of view of Elect-president, this removes your privacy in all aspect, this kind of qualification is depriving the applicants personal life. Click to read more on Credit Repair.

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I know him; he'll be a good Treasury Secretary
Posted by: janvdb on Nov 22, 2008 6:04 AM   
Current rating: 3    [1 = poor; 5 = excellent]
He used to be my boss at the Treasury Dept when he was Dpty Undersecretary for Intl Affairs.

He's clever, diplomatic, dedicated, calm, smooth, effective and familiar with both the Treasury, and, from his time at the New York Fed, Wall Street to some extent.

He understands the issues.

He's not controversial and bombastic like Larry Summers (his boss when he was my boss).

He's never ducked out of any of these government jobs for a Wall Street position to make a bunch of money. He's a pragmatist. He believes in regulation and government, even on Wall Street.

What's not to like?

He'll be good.

Jan VanDenBerg

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More of the Same
Posted by: ron heringhauser on Nov 22, 2008 10:20 AM   
Current rating: 4    [1 = poor; 5 = excellent]
The Federal Reserve (not Federal and no Reserves) is the cause of our economic problems. So Obama picks the head of the NY Federal Reserve Bank to head Treasury, just like Bush picking Paulson (head of Goldman Sachs) who takes taxpayer money and gives it to the gamblers on Wall St. and lost billions. We will see change with the Obama regime for sure...things will go from bad to worse. How about real change, Ron Paul or Peter Schiff to head Treasury. We must end the Federal Reserve banking cartel!

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Kissinger is all you need to know
Posted by: edgeofnowhere on Nov 22, 2008 1:27 PM   
Current rating: 4    [1 = poor; 5 = excellent]
about this person.
"After receiving a master's degree in international economics from Johns Hopkins University, he worked as a research assistant to Henry Kissinger and then joined the Treasury, where he was posted as an assistant attache in Japan."
Read: Bilderberger, CFR, Trilateralist, AIPAC

The Obama "administration," from the top down is orchestrated and controlled by the world banking/corporate/defense elite. Change you can believe in will be more war -- especially with Iran -- depression, repression and the end of the United States and other nation-states as we know them. The European Union should give us a preview of what is to come. The Fed's job is to destroy the US dollar and make way for a new currency. The method of choice will be asset deflation and depression, followed by a hyper-inflationary blow-off with martial law tossed in for good measure. We only have a year or two at best to position ourselves to survive. Good luck.

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Baron Ratschild Kissasser- sound Familiar?
Posted by: Ottomatic on Nov 23, 2008 4:34 AM   
Current rating: 5    [1 = poor; 5 = excellent]
Rathschild invited twelve other wealthy men to meet him in Frankfurt. His purpose was to convince them to pool their resources so they could then finance and control the World Revolutionary Movement and use it to win ultimate control of the wealth and natural resources of the world. Mayer unfolded his plan. The project would be backed by their pooled resources. By clever manipulation of their combined wealth it would be possible to create such adverse economic conditions that the masses would be reduced to a state bordering on starvation by unemployment. Their paid propagandists would arouse feelings of hatred and revenge against the ruling class by exposing all real and alleged cases of extravagance, licentious conduct, injustice, oppression, and persecution. They would also invent infamies to bring into disrepute others who might, if left alone, interfere with their overall plans... Rothschild turned to a manuscript and proceeded to read a carefully prepared plan of action.
1. He argued that LAW was FORCE only in disguise. He reasoned it was logical to conclude ‘By the laws of nature right lies in force.’
2. Political freedom is an idea, not a fact. In order to usurp political power all that was necessary was to preach ‘Liberalism’ so that the electorate, for the sake of an idea, would yield some of their power and prerogatives which the plotters could then gather into their own hands.
3. The speaker asserted that the Power of Gold had usurped the power of Liberal rulers.... He pointed out that it was immaterial to the success of his plan whether the established governments were destroyed by external or internal foes because the victor had to of necessity ask the aid of ‘Capital’ which ‘Is entirely in our hands’.
4. He argued that the use of any and all means to reach their final goal was justified on the grounds that the ruler who governed by the moral code was not a skilled politician because he left himself vulnerable and in an unstable position.
5. He asserted that ‘Our right lies in force. The word RIGHT is an abstract thought and proves nothing. I find a new RIGHT... to attack by the Right of the Strong, to reconstruct all existing institutions, and to become the sovereign Lord of all those who left to us the Rights to their powers by laying them down to us in their liberalism.
6. The power of our resources must remain invisible until the very moment when it has gained such strength that no cunning or force can undermine it. He went on to outline twenty-five points.
8. Dealt with the use of alcoholic liquors, drugs, moral corruption, and all vice to systematically corrupt youth of all nations.
9. They had the right to seize property by any means, and without hesitation, if by doing so they secured submission and sovereignty.
10. We were the first to put the slogans Liberty, Equality, and Fraternity into the mouths of the masses, which set up a new aristocracy. The qualification for this aristocracy is WEALTH which is dependent on us.
11. Wars should be directed so that the nations engaged on both sides should be further in our debt.
12. Candidates for public office should be servile and obedient to our commands, so that they may readily be used.
13. Propaganda--their combined wealth would control all outlets of public information.
14. Panics and financial depressions would ultimately result in World Government, a new order of one world government."
The Rothschild family has played a crucial role in international finance for two centuries.
"For the last one hundred and fifty years the history of the House of Rothschild has been to an amazing extent the backstage history of Western Europe."Someone once said that the wealth of Rothschild consists of the bankruptcy of nations. " Making his money in the crashes and wars, the very periods when others lost their money.

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