Geithner's Radioactive Record at the Fed

The American Thinker ^ | May 18, 2009 | Christopher J. Alleva

[Scanian]

Last week, Treasury Secretary Tim Geithner admitted the Fed failed miserably during his tenure as New York Fed president, and contributed mightily to the financial calamity the world is digging out from under. Geithner conceded massive policy errors in the U.S. and at central banks throughout the world. To sum it up, Geithner confessed that worldwide monetary policy was too loose too long creating a huge bubble in asset prices. Basically, there was too much money chasing investments. Like flood waters, money seeks ever higher returns, pushing prices of real estate and commodities at rates exceeding 15% annually in 2004 and 2005.

Residential real estate underpins the economy. It is the hard collateral that secures the world's financial system. Incredibly, no objections were raised to Geithner's confirmation based on his abject failure as New York Fed president. Instead, he was confirmed mostly along party lines in January 2009. The Washington liberal establishment insisted Geithner was indispensable in handling the financial fiasco.

Now Geithner has admitted responsibility for grave policy errors that are arguably the single largest contributor to the world-wide recession. Geithner, along with current and former Fed Chairmen, Ben Bernanke and Alan Greenspan, are probably the most culpable actors in this crisis. Given the vast resources at their disposal, there is simply no excuse for it. They ought to be politically radioactive.

The Federal Reserve Banks employ armies of analysts and economists. They monitor the economy by tracking money flowing through member banks as well as data from other central banks, agencies, and regulators. This data is then packaged and presented to the money policy makers on the Federal Open Market Committee ("FOMC") that includes first among equals, the Fed Chairman and the New York Fed President. Based on these reports they loosen and tighten the money supply

[ClearCase_guy]

When he was chosen for his current role, all the "experts" said he was the only choice, he had to be Fed chair, no one else had his knowledge.

I think he knows where the bodies are buried and is in his place to help shield the guilty. Protecting friends is the name of the game, saving the economy is secondary.

[wolfcreek]

http://www.muckety.com/Timothy-F-Geithner/2158.muckety

Wonder how he fared in these other positions?

[NativeNewYorker]

I wonder if he sold his place in Larchmont.