Sucking up to power, Timothy Geithner edition

You have probably heard a lot of noise about what was said about the housing bubble at Federal Reserve meetings in 2006. The Federal Reserve Board recently released the transcripts from its 2006 Open Market Committee (FOMC) meetings with the mandatory five-year lag and it turns out the Fed was pretty clueless. Dean Baker does a pretty good job of getting to the meat of the issue in his aptly titled post Alan Greenspan’s ship of fools. Baker concentrates on the housing substance but also offers up a quote from Timothy Geithner, then the NY Fed chief, that I think is quite revealing. Geithner remarks in addressing outgoing FOMC chair Greenspan:

"I’d like the record to show that I think you’re pretty terrific, too. And thinking in terms of probabilities, I think the risk that we decide in the future that you’re even better than we think is higher than the alternative."

Who says stuff like that? Seriously. We’re not talking about high school here. This is a Federal Reserve transcript.

I don’t have anything else to say except that Geithner is now Treasury Secretary and has outlasted every major figure on President Obama’s economic team. You needed to read that statement because it tells you how, behind the scenes, the American financial system actually works.

P.S. – If you are thinking that sucking up to power doesn’t work because people can see right through it, you’re wrong. Sucking up definitely works.

  1. Rastislav Cupal on Facebook says

    hahaha. :-(((

  2. Dave Holden says
    1. Edward Harrison says

      You’ve got him pegged exactly.

  3. RalphMusgrave says

    Plus we should never forget Geithner’s astounding economic illiteracy: earlier on in the recession (in 2009) he thought no stimulus was needed!!!!

    See the ten or so paragraphs starting “By early last year..” here:

    Geithner’s only concern is to save the incompetents on Wall St, and he still seems to be at it. See:

    His nick name should be “Mr Socialism For The Rich”.

    1. Anonymous says

      He also refuted that his job at the Fed included bank regulation. The man is either a kiss ass moron or so incredibly corrupt that it makes incompetence a plus. 

  4. Anonymous says

    By this time, we should all realize what a pathetic pissant this inadequate sycophant actually is,
    and hold him accountable for his meddling. 

Comments are closed.

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