Is Tim Geithner Out Of His Depth?


I’ve been quite surprised at the number of very strange things Treasury Secretary Geithner has said recently. You get a distinct sense that the man either isn’t doing his own thinking, or else he’s not strong enough to resist being told what to say by the White House.

The latest one was yesterday in the Senate Finance Committee. He said, get this, “We don’t believe it makes sense to significantly subsidize the use and production of energy sources” that contribute to global warming.

What’s a significant subsidy? Apparently that means being allowed to produce oil and gas in the Gulf of Mexico. So what’s the response? Add a 13% tax on the revenue of a narrow class of producers that should raise $5 billion or so over the next 10 years.

Why is he even wasting his time with this? His job is to find anywhere from one to two trillion dollars every year for the remainder of his time in office.

Geithner is a government guy. He’s not a business guy, a finance guy, a markets guy, or an economist. None of the above. But by talking nonsense, he’s giving everyone a perception that he’s out of his depth.

This is nonsense because it’s either not a tax that’s big enough to matter, or if it is, it will displace the activity it seeks to tax. If the goal really is to displace the activity, then that’s economic nonsense too, at a time when we should be growing the economy as much as we can.

The other thing it could be is a shot across the bow. This could be David Axelrod’s way of putting down a marker that they really mean it about ending the use of low-cost energy in America on climate-change grounds.

That scares me even more. Say what you will about Henry Paulson (and if you knock him for not knowing how to handle the banking crisis, I might even agree, with the caveat that no one else knows either).

But I never once had a sense that Paulson would stand up and speak obvious nonsense that was crafted by the White House to create a political effect. People who have been CEOs learn very quickly that you can’t do that. But I can’t shake the feeling that Geithner does little else.


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I lost count of the number of times he said he'd have to think about something and get back

USNJIMRET (Diary) Thursday, March 5th at 8:18AM EST (link)

to whatever Senator had asked him about something remotely specific.
And I never understood how someone who had been involved in the planning and execution of TARP was suddenly the smartest man in the world who simply HAD to be Secretary of the Treasury.
He constantly has the deer in the headlights look when ‘testifying’.
Does NOT inspire confidence that he has any idea what is going on.

 

Yes, he's out of his depth.

Brian Hibbert (Diary) Thursday, March 5th at 8:32AM EST (link)

We need Hank back.

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Hank was a much better liar, less incompetent

Alberta (Diary) Thursday, March 5th at 1:52PM EST (link)

Me and my brother where watching that and when he started talking about global warming it was too much.

Dont you love electing ideologues? Incompetent, radical ideologues at that.

Sir, my concern is not whether God is on our side; my greatest concern is to be on God’s side, for God is always right.
Abraham Lincoln

 
 

Yes he his

izoneguy (Diary) Thursday, March 5th at 8:41AM EST (link)

and so his is boss & the rest of the administration. Imagine what they could unleash if these socialists were on their A game. Let’s make sure they don’t get good at their jobs. They won”t be around long enough for them to get “good”. (If your definition of good means being good at implementing socialism)

The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.

 

I hate to quote Steve Jobs

MikeO Thursday, March 5th at 9:22AM EST (link)

I’ve seen the Steve Jobs has been credited with having said something to the effect that “A’s hire other A’s, but B’s hire C’s.”

Or, in this case, a “gentleman’s C-minus” hires other F’s.

Doesn't matter who said it, it's accurate as heck!! NT

USNJIMRET (Diary) Thursday, March 5th at 9:45AM EST (link)

I think that was Marc Anderseen, original founder of Netscape

6eorge Jetson (Diary) Thursday, March 5th at 8:20PM EST (link)

He called it the “Law of Crappy People”

 
 

Bernanke has been silenced

GT350 Thursday, March 5th at 10:27AM EST (link)

You will also notice that Ben Bernanke doesn’t speak as much as he or his predecessors used to. In Tuesday’s Congressional testimony, he backed off of anything that closely resembled a political question. He was asked about taxes, deficits, etc. He declined to address the questions.

Of course, the Fed should not be involved in political decisions. But Greenspan (whose reputation has been revealed as overrated) would comment on the economic impact of political decisions (deficits do matter, low taxes are good but balanced budgets are better). Greenie often made statements that were used (by the MSM) to embarass or contradict Bush. In short, he made use of the Fed’s independence.

It’s pretty clear to me that the Obama admin has told him he’s on a short leash, and if he wants to keep his job, he has to toe the party line. That means Ben has to forego his bully pulpit. Not good.

Bernanke's present term expires Jan 31, 2010

6eorge Jetson (Diary) Thursday, March 5th at 8:28PM EST (link)

Obama gets to appoint (or reappoint) the chairman for the next four year term.

Other than this once every four years appointment, the Fed chairman is independent of the President.

 
 

First do no harm

fisk2521 Thursday, March 5th at 10:32AM EST (link)

This ‘Cap and Trade’ policy by Obama and his friends will destroy the very industry that rovides us with our energy. It’s like biting the hand that feeds you and sinning it so it sounds like a step forward.

“Pay no attention to the man behind the Curtain” – - he’s doing the opposite of what he says on the other side of the room, but just ignore that.

Coal fired power plants provide 1/2 the energy to Americans. Destroying it will help further us into the hole that Obama has been steadily digging since even before he was inaugurated. During his campaign he said this policy was ‘unfortunately’ be passed on to the consumer, increasing each households energy cost to at least $1400 a year. I live in New York State and I can tell you that this Democratic lead state has taxed the living hell out of energy already so this will just decimate many people. All this while their property taxes are some of the highest in the country, and climbing.

While Obama sets up programs to bail out people who were not paying their mortgages, he is forcing people who have, out of their homes by further increasing costs they cannot afford.

“A government that robs Peter to pay Paul can always depend on the support of Paul. George Bernard Shaw

LDavis

Agree totally. I'm waiting to see how long it takes

Praying (Diary) Thursday, March 5th at 1:36PM EST (link)

before anyone on the left has enough balls to admit they were wrong on “global warming.” Even Albore has been forced to back peddle a bit on his hype and lies. Surely this winter did more good to convince people that the earth was not about to burst into flames, and as for “alternative fuels” I read recently that some of the “biofuels” like ethanol have a bigger carbon footprint than oil and gas. I laugh even at that, though, since I will never consider carbon dioxide a pollutant – and will declare the EPA a laughable government pawn if they declare it so.

We breathe out carbon dioxide (better be careful – they’ll start slapping a tax on every living, breathing organism) and plants use carbon dioxide and emit oxygen. It is a cycle, and it has been going on through out geologic time. Carbon dioxide levels have actually been FALLING, and that should cause more alarm than rising levels of this live-enabling gas.

Maybe I’ll buy a herd of shetland sheep – I’m thinking producing more warm clothes will be the way to stimulate the economy. In the meantime, destroying the oil and gas industry (nasty capitalistic companies that they are) will hurt all of us but the poor will be hurt more, and what will the government do without all the royalty payments and taxes pouring in from the oil companies? Or is that another “unintended consequence” brought to you by the administration that can only manage to think things half way through, when they think about them at all?

No!!!11!1!!1!1! The Bilderbergers are coming

 
 

If his intention is to revive the economy,

The_Gadfly (Diary) Thursday, March 5th at 1:13PM EST (link)

he is out of his depth.

On the other hand, if his intention is to tank the economy, He’s bringing his A game.

I’m starting to agree more and more with Mark Levin on this point: Obama and his team have set out to deliberately tank the economy, destroy capitalism, and drive the citizenry into a state of subservience to The State. And no, I’m not buying the “but this started on Bush’s watch” watch crap either. Bush left to his own devices tended toward balancing the budget before cutting taxes. He cut taxes after 9/11 only to avoid a recession, and tried after that to get back to balanced. But because he tried to play nice, and Republicans tried to beat Democrats at the earmark game, and Dems played hardball regardless, he didn’t get what he wanted. And after the Dems got both houses of Congress, Bush played nice and the Dems got what they wanted, with the sole exception of the surge in Iraq.

 

Geithner qualified on the basis that he didn't pay his taxes

Scope (Diary) Thursday, March 5th at 1:41PM EST (link)

and that he would help hold the megaphone for Obamas destructive policies. When he talked about Global Warming, it could only be to try to further the Green investments which will fail. They have put the cart before the horse. You can’t promote anything that is still not in a readily useable, cost effective form, while shutting off what has been used and is cost effective and proven.

 

Geithner qualified on the basis that he didn't pay his taxes

Scope (Diary) Thursday, March 5th at 1:41PM EST (link)

and that he would help hold the megaphone for Obamas destructive policies. When he talked about Global Warming, it could only be to try to further the Green investments which will fail. They have put the cart before the horse. You can’t promote anything that is still not in a readily useable, cost effective form, while shutting off what has been used and is cost effective and proven.

 

LOL

10ksnooker (Diary) Thursday, March 5th at 7:15PM EST (link)

Acting President Obama’s teleprompter buddy has gotten to him.