Geithner To Stay As Treasury Secretary


With all of the bad economic news, and especially in light of the recent S&P downgrade, many expected this year to be the last for Treasury Secretary Timothy Geithner.  Geithner had been vocal about not wanting to stay in the position long and he’s a polarizing figure, even within those who would consider themselves supporters of the administration.  But yesterday Geithner announced he would stay on as Treasury Secretary though the fall of 2012.

Talking Points Memo issues a fair critique of Geithner noting that his tenure has probably been the most difficult of any Treasury Secretary since World War II.

What’s nice about the TPM piece is that it acknowledges that while Geithner and the administration have fumbled on some issues — like whether the 2009 stimulus was big enough or whether they were too easy on the big banks — by in large the administration has gotten most economic questions right.  Or at least not wrong.

Perhaps that is damning by faint praise.  But Geithner inherited an economy in full-seizure.  The Commerce Department recently revised key economic indicators from the 2007-2009 recession that show a contraction of almost 9% annually.  That’s what the Obama administration met on day one.

So the fact that Geithner, and the Obama administration, kept this economy afloat is a tremendous accomplishment.  And those Commerce Department numbers place in greater context the sluggish recovery and the stalled job growth.

The other question to consider is whether or not Geithner agreed to stay on in part because the administration was simply not up for a confirmation fight with Congress.  We’ve seen how Congressional Republicans negotiated with the full faith and credit of the American economy, imagine what they would demand in exchange for confirmation of a new Treasury Secretary.

Related Stories:

Markets React To A Flawed S&P

S&P Downgrades US Credit Rating

Photo from World Economic Forum via flickr.


Glenn M.
Glenn Meyer6 years ago

Cutting spending on, so called, entitlements is ineffective for addressing the deficit. Cutting programs that support the low and middle class will further strain both who don’t even receive lower prices as a result of the U.S. job losses and create a disconnect that will end in another financial collapse. The justification for attacking government benefits as opposed to raising taxes is the creation of jobs. But where?

Corporations have over-powered our government which now believes that out-sourcing and off-shoring of U.S. jobs is inevitable and necessary with expectations that the middle class should fall on their swords. It is the underlying cause of the financial collapse and borders on national security with the loss of our middle class tax base. Yet, this nation does nothing, not even demand it be restricted by whatever method. International businesses are doing the UN-AMERICAN activity of destroying U.S. salaries, U.S. businesses that hire in the U.S., and as an end result, destroying the U.S. marketplace while still demanding BUSINESS ENTITLEMENTS and protections for themselves.

Infrastructure spending and tax breaks will not replace enough jobs to keep up with the hemorrhaging loss of U.S. jobs from out-sourcing over seas. Neither party will do anything about it unless we begin grass roots efforts to protest out-sourcing and off-shoring of U.S. jobs. If nothing is done we will deserve what we get and it will get a lot worse before it gets better

Nelson B.
Nelson Baker6 years ago

Either he is does not know what he is doing or he is working for the benefit of the rich. Obama should replace him.

Robert R.
Robert R6 years ago

As a follow-up to my comment regarding the "Sign Petition" encouragements in the box above these comments ...

... apparently, the voters in Wisconsin are smarter than the editors here at Care2.

Lynn C.
Lynn C6 years ago

The headline tells me all I need to know about the true state of this countries financial health. I'm saving my money (what little there is) under the'll be safer there than in the hands of this government.

Robert R.
Robert R6 years ago

Look right above this post-box.

Why is there so many "Sign Petition" requests for Democrat politicians running for public office?

Do Republicans or "other" get equal time and equal webspace here?

Robert S.
Robert S6 years ago

It is time for Timmy to go.

Marilyn L.
Marilyn L6 years ago

Sorry I think he needs to go.

Vance Daddi
Vance Daddi6 years ago

Just whose economy is Geithner supposed to have saved? Wall Streets? The banks? Certainly not everyday working Americans. If he wasn't sure the stimulus was big enough he should have been more vocal. However, it was apparently big enough to save his cronies down on Wall Street, while not being too big to upset any of his Republican friends.

The question I have for the President and all of his advisers, past and present is why when he was running for president did he have economic advisers who were from the Keynesian school (New Dealers, social conscience, etc.), only to fire them and replace them with Geithner and Summers who are Friedmanites (laissez-faire, free marketers). It seems he took advice that would get him elected and then switched to advisers that would appease big business; to our everlasting detriment.

Doesn't present a very forthright picture.

Robert R.
Robert R6 years ago

Why just Republicans, Lori Ann H ???

Whatever you've been putting in your Kool-Aid must have made you deaf and blind.

A pity.

Krystyna H.
Krystyna H6 years ago

So much for "Change you can believe in". I hope Obama does not use that as his slogan again.