Spotlight Fixed on Geithner, a Man Obama Fought to Keep
By JACKIE CALMESNOV. 12, 2011 .. bit ..
Many outside analysts believe that if Europe had followed the Treasury’s lead sooner and forced banks to hold more capital, its financial institutions would not be so vulnerable.
The administration misjudged the length of the downturn, as did many private economists. Although Mr. Geithner wanted Congress to pass more short-term help for the economy than it did, he was not among those in the administration who were pushing hardest for additional short-term measures to lift hiring.
As a consequence, Mr. Obama’s economic team failed to help him prepare Americans for the pain ahead. It has proved a defining mistake of the Obama administration.
Although Congress limited the administration’s options, many economists fault Mr. Obama and Mr. Geithner for being too timid in intervening, especially to help homeowners. In White House meetings, Mr. Obama has repeatedly voiced frustrations — sometimes brandishing letters from distressed homeowners — that the administration’s initiatives have not helped nearly as many homeowners as advertised.
“I just don’t think they tried hard enough, and I’ve told the administration that,” said Alan S. Blinder, an economist at Princeton and former vice chairman of the Federal Reserve. “They haven’t done the really difficult things — like using a lot more public money. Yes, there are legal complexities, political difficulties and all that. But stemming this epidemic of foreclosures was — and still is — vitally important.”
News 
Market Data 
Discover 
AI
