Posted by Karl Denninger
WASHINGTON – Treasury Secretary Timothy Geithner said Thursday it’s “deeply unfair” that some financial institutions that got taxpayer-paid bailouts are emerging in better shape from the recession than millions of ordinary Americans.
But in a “TODAY” show interview, Geithner also argued that President Barack Obama had no choice when confronted with a financial crisis.
Let’s say that I accept that. I don’t, by the way, but let’s assume that I do.
The real problem with his speechifying is here:
“What happened in our country should never happen again,” he said. “People were paid for taking enormous risks. It was a crazy way to run a financial system.” Geithner said, “It’s the government’s job … to do a better job of restraining that kind of risk-taking.”
Who was the one that was responsible for watching over that enormous risk-taking and crazy operation of the financial system?
Oh that would be Timmy Geithner, who was running the NY Federal Reserve Bank, the organization that both executes monetary policy and monitors every one of those “too big to fail” institutions that we had to bail out.
So for Timmy’s malfeasance, misfeasance or both – which he just admitted to on national television – he is promoted to Treasury Secretary?
If you’re an Obama supporter, how do you defend not only the choice of Timmy for the job in the first place, but President Obama’s continued “confidence and support” in the very man who has admitted that the financial system that he oversaw and was charged with monitoring was being run “in a crazy way”?