The markets danced with joy at the announcement of Barack Obama’s appointment of New York Federal Reserve President Timothy Geithner to be Secretary of the Treasury. You’d have thought the Messiah-elect had found an Assistant Messiah. And maybe he’ll turn out to be just what the economy needs. But James Pethokoukis Of US News asks a very good question, one that should be posed at Geithner’s confirmation hearing:
"Mr. Geithner, the job of the New York Fed is to — now I am quoting its own web site — ‘supervise and regulate financial institutions in the Second District [Wall Street]. Its primary objective is to maintain safe and competitive U.S. and global banking systems.’ You have been in your current post since 2003 and during that time the U.S. financial system has come close to complete disintegration. Why do you deserve a promotion?"
Let’s hope some Republican* senator has the nerve to ask.
*(No, I don’t expect a Democrat ever would.)