In a ""60 Minutes"" interview with Steve Kroft, President Barack Obama defended his treasury secretary appointee by rejecting the possibility of Timothy Geithner stepping down: ""No. And—and he shouldn't. And if he were to come to me, I'd say, ‘Sorry, Buddy. You—you've still got the job.'""
Is anyone pleased with the stagnant economy? I am sorely disappointed in the inability of our leaders to grow a pair and implement policies that will actually ensure our economic solvency—our short-term fixes haven't spoken too loudly.
It is my intent to acknowledge Geithner's vast intelligence on an array of economic matters. I'd also like to note his swift rise to power in the government finance sector. Since joining the division of International Affairs of the U.S. Treasury, he has risen to the very top of the department before hitting 50. It is evident that, from an intellectual standpoint, Geithner seems like a proper candidate for the difficult position he must fill. But observing his record over the course of his term, I've noticed a pattern of questionable judgment and, at times, a seeming lack of basic business ethics.
A brief introduction to Geithner's career will firstly point to our treasury secretary's tax problems—yes, tax problems—and this, from arguably the most powerful man in government finance. At his Senate confirmation, it became known that he had failed to pay self-employment taxes for several years, a sum totaling an alleged $35,000, as well as additional assessment of taxes to his name in 2003 and 2004, totaling over $14,000. What's more, to fund his children's camp, he deducted the cost as a dependent care expense.
Eventually, his appointment to the position was confirmed by the Senate with a vote of 60-34. If this all happened prior to Geithner's work on this grand, national scale at the Treasury, what suspicions should arise of his moral trust worthiness now, and in the future? Clearly, United States politics have an unfortunate lack of ethical credibility. Above all, it is worth mentioning that Geithner recently requested a more unconditional level of power as Secretary, an opinion shared by none other than his predecessor, Hank Paulson. Is this the epitome of democratic leadership?
Recently, a PBS interview featured William K. Black, professor of economics and law at the University of Missouri. In the interview, he lambasted the banking system as crooked. To paraphrase, Black believes a conspiracy of the banks and other financial institutions have formed a system of ""liar loans."" He accused these toxic assets which we've heard so much about of receiving triple A ratings, along with complete lack of oversight. The conspiring was labeled by the professor as a ""Ponzi-like scheme"" like Bernie Madoff's, saying it told the classic tale of overexpansion—great riches and rewarding financial figures in early years, leaving little room for future success.
Geithner's faith in the financial system will fail him. The wonder days of investment banking and debt-security assets are descending more and more quickly toward their demise, and Geithner is there for bedside solace. Behind the scenes, Black accused Geithner and Paulson of covering up the fraud in fear of collapse. The fear of such a simple moral task as telling the truth is harnessed deeply within our political engine. Politicians wait with butterflies in their stomachs for the day they will have to reveal that several of our economy's powerhouse companies are full of shit. They fear the day they'll have to concede that America's economic dominance in modern times, has evolved into something new with the possibility of a level international economic playing field. Such an awful event would, at the worst, lead toward international cooperation and world peace, or, bless Adam Smith, mobilization once again to the very essence of free-market capitalism—competition. So, President Obama, I hope you reconsider your determined refusal of a potential resignation from the secretary.
Cole Wenzel is a sophomore intending to major in business. Please send responses to opinion@dailycardinal.com.
