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Geithner Got It Right

Treasury secretary's pragmatic approach to financial crisis paid off

By Rob Quinn, Newser Staff

Posted Nov 20, 2009 5:16 AM CST

(Newser) – David Brooks leaps to the defense of Tim Geithner today, arguing that the treasury secretary's critics, who last spring were dismissing him as a hapless "Bambi in the headlights," were mostly wrong and he was mostly right. The system is now much healthier, TARP money is being repaid, and the administration's unwavering support for Geithner when he was taking flak from all sides looks impressive in retrospect, Brooks writes in the New York Times.

Events, he writes, have vindicated Geithner’s "basic policy instincts. The criticism back then was that Geithner was neither bold nor visionary. He was too cautious, too much the insider and bureaucrat." In fact, Geithner's pragmatic approach and ability to balance priorities made him flexible enough to deal with the crisis effectively, Brooks writes. He resisted calls to nationalize the banks, which would have been a costly mistake. "Geithner’s path was a middling one, but it helped the country muddle toward recovery."

[Images (2)]

[Quotes (2)]

Treasury Secretary Timothy Geithner testifies before the Joint Economic Committee hearing on financial regulatory reform yesterday. (AP Photo/Jose Luis Magana)

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When financial confidence
is cratering, Geithner concluded, government should be as aggressive as possible, as early as possible. At the same time, it should try not to do things that the market does better. - David Brooks

The criticism back then was that Geithner was neither bold nor visionary. He was too cautious, too much the insider and bureaucrat. But this prudence was the key to his effectiveness. - David Brooks

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COMMENTS

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Showing 3 of 12 comments

CS1234

Nov 20, 2009 12:49 PM CST

I am glad that the states can't be forced to use the money. Isn't the Constitution a great thing. Big brother is providing temproary money to prop up state programs and budgets so they don't go under. Who is going to pay for those programs next year when the same budget deficits are realized? The govt keeps digging and can't figure out why the hole just keeps getting deeper.

divetrader

Nov 20, 2009 12:47 PM CST

I guess Brooks didn't see that people are asking for Geithners head based on the back door deals from AIG to the banks.

DontLikeYou___

Nov 20, 2009 12:33 PM CST

Do the 2500 AOL workers who just got layoff notices think that Geithner got it right?

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Politics • Money

Obama administration • Treasury secretary • financial crisis • Timothy Geithner • TARP

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Geithner Got It Right