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Thursday, January 07, 2010

Should He Stay or Should He Go?

Is Geithner "doomed"?:

Geithner’s Stained Past Leaves Future In Question, by Steven Russolillo: The latest revelation surrounding Tim Geithner has generated a spirited debate among your humble Market Talk editors: if and/or when will the Treasury Secretary get the boot?
Before we answer that question, here are the details. The NY Fed, when under Geithner’s leadership, reportedly told AIG to limit disclosures on CDS payments made to banks during the height of the financial crisis. Bloomberg has the scoop...
Bloggers have been all over this story, ripping Geithner for his cagey, often-times evasive maneuvering. ...
The Market Talk trio is a bit divided on this issue.
Shipman thinks Geither’s already fumbled enough times — from his pre-confirmation tax problems, to lame PPIP effort, poorly implemented mortgage mods plan and pusillanimous rationalization for paying 100 cents on the dollar to AIG’s CDS counterparties — to warrant dismissal, months ago. Now, he simply represents a growing liability for the Obama Administration.
Paul and I aren’t as extreme. Paul thinks Geithner isn’t likely to lose his job unless the recovery falters, in which case he’s an obvious fall guy. As long as the labor market starts generating positive job growth in the near future and there isn’t a significant stock market correction, there won’t be additional pressure on Obama to make a change. I also believe Geithner won’t get replaced anytime soon. Why would Obama risk creating public uncertainty by removing such a high-level official if the economy truly is on the road to recovery?

Readers? What say you? Is Geithner doomed? Speak freely in the comments section below.

I doubt that he's on his way out, but whether or not he should be is another question.

    Posted by on Thursday, January 7, 2010 at 01:44 PM in Economics, Financial System, Politics | Permalink  TrackBack (0)  Comments (40)


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