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Tim Geithner — Really? I mean, is it really possible to live in this country after 8 years of Bush, 6 months of financial apocalypse, and still not have the smallest clue? Macroeconomics as a discipline developed in the 30s because that global financial meltdown was precipitating a global political meltdown. Doesn’t anyone remember Nazis vs. Commies in the streets of Berlin and Munich? No, not in this country. If you want a perfect example of the triumphalist myopia of the free market fundamentalists take a look at the documentary The Commanding Heights by Greg Barker and William Cran. The one good observation made in the documentary is that both J. M. Keynes and Friedrich Von Hayek thought economic collapse would lead to political anarchy.
Now these yahoos working from a mix of free market fundamentalist ideology and naked, corporate self-interest, are opening up a political firestorm by crippling a real fiscial stimulus package with useless tax breaks and spending cuts for states while at the same time handing over hefty cash gifts to their friends the oligarchs on Wall St. (For my personal experience of the humiliation of this see my earlier post.) In the words of Stephen Labaton and Edmund Andrews:
Mr. Geithner, who will announce the broad outlines of the plan on Tuesday, successfully fought against more severe limits on executive pay for companies receiving government aid.
He resisted those who wanted to dictate how banks would spend their rescue money. And he prevailed over top administration aides who wanted to replace bank executives and wipe out shareholders at institutions receiving aid.
Obama is spending his good name out in America to enable a couple of bumbling, Ivy educated fools to destroy any trust Americans have left in their government.