I think Glenn Greenwald and David Suskind are credible. The first paragraph echo's the same question I keep asking about Summers and Geithner versus Stiglitz, Reich and Goolsby.
MONDAY, SEP 19, 2011 06:20 ET The Geithner mystery solved
BY GLENN GREENWALD
Reuters
U.S. Treasury Secretary Tim Geithner
(updated below - Update II)
Reviewing "Confidence Men" -- Ron Suskind's new book critically examining President Obama's management of the financial crisis -- The New York Times' Michiko Kakutani ponders this mystery raised by Suskind:
[] Mr. Suskind suggests that the administration's problems in dealing with the fiscal crisis began with the president's choice of his economic team. He wonders why Mr. Obama turned away from the advisers who had seen him through the campaign (including more progressive thinkers like Mr. Stiglitz, Robert Reich and Austan Goolsbee), and relied instead on two men associated with the deregulatory policies of the past, Mr. Geithner, the Treasury secretary, and Mr. Summers, the chief economic adviser. Both men had served in the Clinton administration (with Treasury Secretary Robert E. Rubin, who would later join Citigroup as a senior adviser and board member); their actions, Mr. Suskind contends, "had contributed to the very financial disaster they were hired to solve."
Of course, one might ask the same of Obama's penchant for filling the most important positions in his administration -- including his Vice President, Secretary of State, and Defense Secretary -- with supporters of the Iraq War. But about Geithner, Suskind unwittingly solved the mystery he raised: Kakutani notes that "one top banker quoted in these pages refers to [Geithner] as 'our man in Washington' for helping avert more systemic changes affecting Wall Street."
Geithner wasn't chosen and hasn't remained despitebeing "associated with the deregulatory policies of the past" and despite being the bankers' "man in Washington." He is empowered precisely because of those facts, as was pointed out even before Obama's inauguration. That Geithner and Summers were empowered after enabling the financial crisis through Wall Street subservience isn't a mystery; it's the explanation. (And just by the way, replacing the word "despite" with the phrase "because of" is -- in general -- one of the most valuable tools for translating Washington propaganda into reality; here is an excellent example showing how that works, from the first paragraph of a New York Times article two weeks ago: |
