I didn't think I would write that headline. I am among the many who have begun to wonder about Treasury Secretary Tim Geithner's competence. But I agree with Calchala's recent diary about keeping him (regardless of whether this is unpopular). Here's why:
I don't believe in mindless support of Obama's Administration. He's going to make mistakes and a healthy democracy should allow for vigorous debate. But the drumbeat of calls for Geithner's resignation (see David Sirota) feeds into a couple of agendas that aren't about helping this country or this economy.
- It's becoming a Republican call to arms. I suppose they're not always wrong (I'll have to check), but they're not calling for Geithner's resignation for the good the republic. They want to hamstring Obama's ability to fix this economy (remember, the Oxy-chewing Fat Man wants him to fail). The GOP would like to stop Obama's programs in their tracks. Getting rid of Geithner now would serve them well and might just cripple the economy.
- How can a man who is working 15-hour days trying to save a desperately ill economy also be minding his own political future? Geithner seems not to have the public relations instincts of a groundhog. But that doesn't make him incompetent. If I were advising him, I'd suggest he lay off appointing Wall Street insiders (two biggies by my not careful count), hire a few folks who care about Main Street, and find someone who can get the message out with many fewer weasel words. But the problems he faces are huge and I can't condemn him if that's not his priority. He needs the administration's help with this (get Plouffe on it). Hunkering down might be getting the job done, but there's some message work that has to be done. And a lot more care with appointees.
- For all that they're infuriating, the AIG bonuses are a distraction. This country needs to cut the rotten core out of its economy and needs to put some oversight in place to prevent it from reappearing. That's an enormous job. I'm just as angry about the bonuses as everyone else, but they really aren't the point. If we allow ourselves to be distracted from the big, painful structural issues, then the tragedies that are allowing tent cities (TENT CITIES!) to crop up all over this country will repeat themselves. What Geithner knew about the bonuses and when isn't the point. The sick NY-DC champagne and contempt party that allowed this to happen (yes, you, Phil Gramm) must stop.
- The 24-7 drumbeat of economic news (or non-news) is not giving Obama-Geithner time to get traction on this. I am one among many people obsessively checking the news and the blogosphere for something (anything) comforting about the economy right now. An uptick on the Dow and it's all good; a bunch of bad boys and their bonuses and it's all going to hell. But Obama's right: we have to take the long view. Bush and the boys on Wall Street wrecked the economy over a lot of years and with a lot of help, yes, even from Democrats (I'm talking to you, Bill Clinton). Expecting this administration to fix it in two months is asking the impossible. Give them some time. Then unelect them if necessary.
- Populist rage is a powerful thing. Let's harness it and direct it where it belongs: at the Wall Streeters who laughed all the way to the (offshore) bank and at the legislators (Republican AND Democrat) who helped them.
- Who was the last Treasury secretary with this much at stake, under this much pressure, and with this kind of scrutiny. Obama mentioned Hamilton. I'd say no one.
All that said...
Geithner appears on the surface to be too close to Wall Street and too frightened of ruffling the feathers of the Masters of the Universe to really be effective. He really does have to stop appointing people who have worked for the likes of Goldman and Citi. And he really must commit himself to working for the United States, not the bankers. If he can't do that, he should go. I'll help him pack.