What Barack Obama Needs to Know About Tim Geithner, the AIG Fiasco and Citigroup

The Institutional Risk Analyst via Real Clear Markets ^ | 11/24/2008 | staff

[Kid Shelleen]

---snip--- If you look at how the Fed and Treasury have handled the bailouts of Bear Stearns and AIG, a reasonable conclusion might be that the Paulson/Geithner model of political economy is rule by plutocrat. Facilitate a Fed bailout of the speculative elements of the financial world and their sponsors among the larger derivatives dealer banks, but leave the real economy to deal with the crisis via bankruptcy and liquidation. --snip-- The Paulson/Geithner bailout model as manifest by the AIG situation is untenable and illustrates why President-elect Obama badly needs a new face at Treasury.

[Kid Shelleen]

Takes a little while to get to the point but provides the details necessary to question Mr. Geithner’s appointment.

[Carley]

Given O’s limited time in D.C. it is clear that his appointments are being made at the direction of others.

I suspect this is the third bubba term.

[scooby321]

Well he can't appoint his friends. Ayers , Wright and Penny Pritzker Queen of the predatory Sub-Prime.

[LifeComesFirst]

I’ll say. Appointing a bunch of pro-market mainstream economists for all your big economic jobs clashes majorly with Obama’s socialist past.

The DUers are not happy, as you can imagine.

[Swing_Thought]

Appointing a bunch of pro-market mainstream economists for all your big economic jobs clashes majorly with Obama’s socialist past.

I can't buy that Geithner is pro-market, not in the classical sense anyway. The man sits at the head of the most powerful branch of the central bank - the hub of the banking cartel that's in large part responsible for the current monetary crisis.

He is mainstream, though.

[Adder]

Zero knows an’ Zero don’t care....