Articles Praise Timothy Geithner

April 12, 2010 by · Leave a Comment
Filed under: General 

Treasury Secretary Timothy Geithner has been widely criticized for his handling of the financial crisis and the Wall Street bailout. However, profiles in The New Yorker and Atlantic Magazines, attribute the economy’s turnaround, as modest as it has been, to Geithner.

Both pieces maintain that Geithner is a deft technocrat who was able to avoid the nationalization of banks and save the U.S. taxpayer trillions.

Yet Joshua Green of Atlantic believes that Geithner was a product of the pre-crisis Washington:

Everyone thought that financial services was the perfect industry, where you had a harmonization of progressive values with money. It was a way to be a good Democrat and a good liberal while making lots of money. The mark-to-market accounting changes, the loosening of bank capital requirements, harmonizing international standards—all that stuff was seen as, like, ‘Where’s the harm in this?’ If banks are making a little more money to keep up with their international competitors, what’s the big deal?

Geithner, Green concludes, was able to quickly see “the big deal” when things began to implode and attributes his actions to saving the economy.

John Cassidy of The New Yorker, gives credit to Geithner for restoring faith in the banks and is critical of the Obama administration for providing Geithner with insufficient support and Presidential leadership.  Time Geithner is a bit real player in this crisis.  He has addressed the symptoms.  The real investigation and some blame should be aimed at Congress, FNMA and Freddie Mac.  Until we call out Congress and the GSEs, we will be doomed to repeat this crisis.

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