Note to Obama: The Brightest Advisors Are Not Always the Best

By Frank Rich, The New York Times. Posted December 8, 2008.

Summers and Geithner are both protégés of another master of the universe, Robert Rubin. His appearance in the photo op for Obama-transition economic advisers three days after the election was, to put it mildly, disconcerting. Ever since his acclaimed service as Treasury secretary in the Clinton administration, Rubin has labored as a senior adviser and director at Citigroup, now being bailed out by taxpayers to the potential tune of some $300 billion. Somehow the all-seeing Rubin didn’t notice the toxic mortgage-derivatives on Citi’s books until it was too late. The Citi may never sleep, but he snored.

Geithner was no less tardy in discovering the reckless, wholesale gambling that went on in Wall Street’s big casinos, all of which cratered while at least nominally under his regulatory watch. That a Hydra-headed banking monster like Citigroup came to be in the first place was a direct byproduct of deregulation championed by Rubin and Summers in Clinton’s Treasury Department (where Geithner also served). The New Deal reform they helped repeal, the Glass-Steagall Act, had been enacted in 1933 in part because Citigroup’s ancestor, National City Bank, had imploded after repackaging bad loans as toxic securities in the go-go 1920s.

Well, nobody’s perfect. Given that John McCain’s economic team was headlined by Carly Fiorina and Joe the Plumber, the country would be dodging a fiscal bullet even if Obama had picked Suze Orman. But I keep wondering why the honeymoon hagiography about the best and the brightest has been so over the top. Washington’s cheerleading for our new New Frontier cabinet superstars has seldom been interrupted by tough questions about Summers’s Harvard career or Geithner’s record at the Fed. For that, it’s best to turn to the business press: Andrew Ross Sorkin at The New York Times, for one, has been relentless in trying to ferret out Geithner’s opaque role in the catastrophic decision to let Lehman Brothers fail.

No doubt the Pavlovian ovations for the Obama team are in part a reaction to our immediate political past. After eight years of a presidency that valued cronyism over brains (or even competence) and embraced an anti-intellectualism apotheosized by Sarah Palin, it’s a godsend to have a president who puts a premium on merit. I also wonder if a press corps that underrated Obama’s political prowess for much of the campaign, demeaning him as a professorial wuss next to the brawny Clinton and McCain, is now overcompensating for that mistake. No one wants to miss out a second time on triumphal history in the making.

This, too, is a replay of what happened when Kennedy arrived, beating out the more seasoned Richard Nixon and ending eight years of Eisenhower rule. “Rarely had a new administration received such a sympathetic hearing at a personal level from the more serious and respected journalists of the city,” Halberstam wrote. “The good reporters of that era, those who were well educated and who were enlightened themselves and worked for enlightened organizations, liked the Kennedys and were for the same things the Kennedys were for.” They couldn’t imagine that “men who were said to be the ablest to serve in government in this century” would turn out to be architects of America’s “worst tragedy since the Civil War.”

Post-Iraq, we’re unlikely to rush into a new Vietnam. But we ignore the past’s lessons at our peril. In his 20th-anniversary reflections, Halberstam wrote that his favorite passage in his book was the one where Johnson, after his first Kennedy cabinet meeting, raved to his mentor, the speaker of the House, Sam Rayburn, about all the president’s brilliant men. “You may be right, and they may be every bit as intelligent as you say,” Rayburn responded, “but I’d feel a whole lot better about them if just one of them had run for sheriff once.”

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