Top Ten Disturbing Aspects of Obama’s Choice of Treasury Secretary
Obama campaigned on his alleged “judgment to lead.” The Geithner nomination makes a mockery of that claim.
Barack Obama’s nomination of Timothy Geithner for Treasury Secretary, and the circumstances surrounding it, have raised many issues and questions — not only about the nominee himself, but also about senators and others reviewing it, the media’s coverage, and ultimately his presumptive boss’s leadership.
Here are the top ten disturbing aspects of the Geithner nomination, not in order of importance until number one.
10. His performance in his previous job
Geithner became president of the Federal Reserve Bank of New York in 2004. The New York Fed’s “about” page says that one of its duties is “to ensure a safe and sound banking system,” and that it “conducts onsite and offsite examinations of banks in New York, New Jersey, and Fairfield County in Connecticut.” Since so many major financial institutions are under the New York Fed’s jurisdiction, Geithner’s New York Fed has an outsized role in ensuring the soundness of the banking system nationwide.
But in the same November 24 New York Times article that describes him as “a 47-year-old wonder boy,” reporter Andrew Ross Sorkin quotes several anonymous Wall Street CEOs who “question whether he’s up to the challenge.” His roles in managing the unravelings at Bear Stearns, AIG, and Merrill Lynch, the bankruptcy at Lehman, and the ongoing implosion at Citigroup deserve scrutiny. They appear to be getting none.
Beyond that, the suddenness of these collapses should lead nomination-vetting senators to question the quality of and follow-up relating to “examinations” done on Geithner’s watch. Can the money center blowups be traced to years of inadequate oversight?
9. His role in the Troubled Asset Relief Program (TARP)
Within days of its enactment by Congress, TARP, now fully funded by Congress to the tune of $700 billion, morphed from the asset-buying program originally advertised to one of direct, “(figurative) gun to the head” investments in banks. Geithner was a key behind-the-scenes player in all of this — Sorkin called him “the point person for weeks of sleep-deprived bailout weekends.”
To what extent is Geithner responsible for the schizophrenic, misleading, and confidence-shaking mishandling of what I have been calling the SUCKUP (Seemingly Unlimited Cash Kitty Under Paulson)?
8. Likely tax evasion, not “mere” avoidance
“Wonder boy” Geithner failed to pay $34,000 in self-employment taxes on his earnings at the International Monetary Fund from 2001 through 2004, even though the IMF partially reimbursed him for these taxes each year.
The IRS caught his (cough, cough) “honest mistake” in 2006 and made Geithner pay up for 2003 and 2004. But he didn’t do so for 2001 and 2002 until just before Barack Obama nominated him. Why? Because the three-year statute of limitations, based on when a return is filed, had expired for those two years.
But the statute of limitations does not apply “in the case of a false or fraudulent return with intent to evade any tax.” Given that he had tax problems going back to 1993 over paying taxes on wages paid to domestic help, it should be obvious that Geithner knew full well when he filed his 2001 and 2002 returns that Uncle Sam demands his 15.3% for Social Security and Medicare no matter where and for whom you work inside the U.S. Thus, I believe that he knowingly filed false returns, engaging in tax evasion, not avoidance.
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Tom Blumer owns a training and development company based in Mason, Ohio, outside of Cincinnati. He presents personal finance-related workshops and speeches at companies, and runs BizzyBlog.com.
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80 Comments
1. Barnett:This summarizes very well why and what this nomination exposes.I would add another point
Jan 21, 2009 - 3:17 am 2. Robert Hurley:after yesterday’s Inaugural spin, Obama’s example for the children and the young adults.Every appointee, and/or nomination, must exemplify the “responsible” characterization now added to the new Obama era to rebuild(?) America, which is supposed to include ‘transparency’, ‘most ethical administration in history’,and, of course, “change.”.The choice of Geithner ,Clinton, Daeshle, Browner,
and a host of others, in addition to those from the Chicago machine,certainly, reveals just how ethically and morally challenged this new President is.I don’t think, he knows that. Is Billy Graham still available?
By all reports, the vast majority of economists and politicians think he is the right man for an incredibly difficult job. I admit that the failure to pay the taxes is disturbing, but if he is the best man for the job, he will be confirmed.
Jan 21, 2009 - 4:18 am 3. eon:Speaking as one of Senator Voinovich’s constituents, I agree with him (which I seldom do). I have a very serious problem with a well-connected gent who repeatedly flaunts laws that I would long ago have been in jail for violating. I have an even bigger problem with the new administration handing the keys to the treasury to someone who is noted for playing fast and loose with the country’s financial laws. Not only should Geithner’s nomination be turned down, it should be withdrawn, and one of the new Attorney General’s first assignments should be his immediate indictment and prosecution. After all, they nailed Snorky (Al Capone to you youngsters) for income tax evasion.
The fact that Geithner is even being considered for Treasury Secretary tells me all I need to know about the new administration’s attitude toward the law. Namely, that like Leona Helmsley, they believe that “laws are only for little people”. And to them, we are all little people.
Of course, as Sean Connery said, “That’s the Chicago Way.”
clear ether
eon
Jan 21, 2009 - 4:29 am 4. thegre8_1:Geithner should be in an orange jumpsuit. What would happen if any of us did not pay social security taxes for four years? And he gets off without paying a penalty. Welcome to France my fellow Americans.
Jan 21, 2009 - 6:17 am 5. SaraforAmerica:Robert Hurley #2
If it is true that a vast majority of politicians think he is the right man for the job, then that probably should rule him out.
Jan 21, 2009 - 6:30 am 6. TheWriteJerry:Nominating Geithner, let alone confirming him as Treasury Sec., just proves the point that the law is not applied equally in America anymore. What will happen to the deli owners, the freelance writers, the Wesley Sniped-grade actors who follow Geinther’s example and skip paying their taxes (not to mention apply for and accept reimbursement for said unpaid taxes)? Will they get a pass from the media and a new job/pay raise from the government? Or will they end up, as thegre_1 so aptly put it, in orange jumpsuits?
Geinthner’s nomination is an insult, and his confirmation should allow every other person a ready defense for tax evasion. Excuse me – tax forgetfulness/goof/oversight/honest mistake.
Jan 21, 2009 - 7:01 am 7. savage24:He couldn’t have got a cheaper loan from his own bank. The last I heard , failure to pay taxes was a 25% fine plus interest. It usually ends up that the fine an interest are more than the orginal taxes. That’s what you or I would be paying!
Jan 21, 2009 - 7:11 am 8. Cybergeezer:Too bad Nixon didn’t uncover some felonious activity during his eavesdropping. With felonious activity a required qualification on any Democrat resume, it creates more mystery.
Jan 21, 2009 - 7:13 am 9. SAM:Obama and his wife didn’t regularly use an interest-bearing checking account until 2005. They have owned two equity investments in their lives, which they bought and then sold in 2005. Obama knows nothing about economics and markets. I don’t trust him in his selection of Geithner. Now that we know what we know about Geithner, let’s move on to the next person. Not one of these economists really knows what’s going on, so let’s at least select one who is honest.
Are we really confident that a tax cheater–and that’s what Geithner is–will level with us if he screws up? I suspect that much of the next two years will be a lot of trial and error. At a minimum, I want a straight shooter. And Geithner clearly isn’t.
Jan 21, 2009 - 7:21 am 10. Josh:The irony here is that I don’t see him playing that big a role in whatever comes next. If he’s truly the right man for “the job” staying in NY would have had a greater impact. I suspect Rubin and Summers are running economic policy for Obama out of the White House but Obama knew Summers would have been to controversial a pick. Geithner is there for window dressing and Obama figured he’s sail threw because everyone was fawning over him in his role at the NY Fed. The fact that he’s still trying to get confirmed is a testament to Obama’s ego, not Geithner’s necessity.
Jan 21, 2009 - 7:23 am 11. Kurt:Absolutely appalling that elected officials turn a blind eye towards the Geithner nomination. The US Congress is filled with corrupt and greedy individuals who will not take a stand with what is right and what is wrong. This nomination is WRONG and his nomination should be voted down!
Jan 21, 2009 - 7:44 am 12. Rusty:I always hear that “the majority of economists agree” or disagree with some plan or pick. I’ve got a Ph.D. in Business, how come I never get asked? Well, I went down the hall and talked to someone with a Ph.D. in Economics (you guessed it, I work at a university). He gets e-mail all the time asking him to respond to some survey. His response, “How would I know about some guy heading up the banking system in NY?” In reality, the MAJORITY of economists wouldn’t know about Geithner or his policies. He only showed up on the national policy radar after he was tapped by Obama. So what are these economists and politicians supporting???
Jan 21, 2009 - 8:07 am 13. drjohn:“I saved a bundle on self-employment taxes by switching to Geithner!”
Jan 21, 2009 - 8:08 am 14. drjohn:Bernie Keirik was the right guy for his role too.
Jan 21, 2009 - 8:08 am 15. Robert Hurley:Rusty – Was that a correspondence course where you got your PhD? It sounds like you are ensconced in an ivory tower setting and not running a business
Jan 21, 2009 - 8:19 am 16. Robert Hurley:Rusty – Mr. Geithner gets a strong endorsement from Paul Volcker, who spent two terms as chairman of the Federal Reserve and was recently chosen to lead President Barack Obama’s Economic Recovery Advisory Board. Mr. Volcker praises Mr. Geithner, saying he is ideally suited for the Treasury post. Among other qualifications, he points to his years of experience as head of the Federal Reserve Board of New York — “a position I once held,” he notes.
I guess we should value your opinion more than Paul Volker’s
Jan 21, 2009 - 8:24 am 17. Jeff Perren:“It leaves you wondering if anyone in Washington knows or cares about the difference between right and wrong.”
Not many, and not vocally. Witness the endless debates about how much stimulus money to spend, and where, and what will be the likely practical effects of this and that. No one in power has said, “It’s morally wrong. Period. Let’s not do it.”
That applies on both sides of the aisle, unfortunately. This is what a fascist state looks like.
Jan 21, 2009 - 8:25 am 18. Mike:Will the following stand and be recognized: Schummer, Rangle, Frank, Clinton, Obama, Geithner; Thank you you are a now certified members of the Liars Club with further certification as Honorary frauds. Please be sure to pick up you “get out of jail Free” cards from the new AG.
Jan 21, 2009 - 8:48 am 19. Rusty:Robert,
Correspondence course, that’s funny! The point I was making is that the “vast majority of economists” you refer to in post #2 doesn’t exist. Our university is thirty minutes away from our own Federal reserve – in case you didn’t know they are regional (Geithner served in NY). Why would, again, “the vast majority of economists” support someone who they have never heard of – unless they are like you and follow everyone their political candidate supports and attack those who question their qualifications.
Jan 21, 2009 - 8:52 am 20. Robert Hurley:Rusty – Let me guess – you teach econometrics?
Jan 21, 2009 - 8:59 am 21. Robert Hurley:From all evidence, Geithner is a brilliant guy who made a stupid mistake. Not that unusual from my experience. I agree he should be questioned, but from all evidence I have seen, no one is going to deny him the position as this stage of the financial disaster.
Jan 21, 2009 - 9:02 am 22. Erik:Ok. So he is professionally qualified, but he is not ethically qualified. The American people will have no confidence in him. Case closed.
Jan 21, 2009 - 9:11 am 23. Tim:Ok, so now we free all folks jailed for tax evasion and return to the others who were fined for failure to pay taxes the money they put up.
Jan 21, 2009 - 9:35 am 24. Anton:There problem solved…Isn’t there something about the incom tax being voluntary?
@21. Robert Hurley: Try making the same :”stupid mistake” on your own taxes, I’ll send cigarettes to you in prison.
Why are you so nasty BTW?
Jan 21, 2009 - 9:38 am 25. Anton:Maybe he got tax advice from Charlie Rangel.
It staggers the imagination that some one that so brilliant could fail at such a simple task (try buying TurboTax, it makes it dead easy) when 100s of million of average Americans can manage it every year.
“Oops, My bad, I forgot” simply isn’t plausible.
Jan 21, 2009 - 9:42 am 26. Stephen Macklin:Hugh Hewitt cops out, saying that “a president deserves his cabinet choices because he has won the election and been charged with executing the laws.”
Then why bother with whole charade of confirmation hearings? Let’s just eliminate the Senate’s role of “Advise and Consent.” And why stop there. Why bother having Congress vote on any legislation he proposes for the first hundred days. Hey He’s the President. He won the election.
Checks and Balances, Hugh. Checks and Balances.
Jan 21, 2009 - 10:36 am 27. Richard G.:When is the voting public going to realize that we need to vote out of office most of the buffoons we presently have in the House and the Senate and get some people that will truly represent their constituents and will have some decent morals? Until we get this “old guard” out of Washington, what we are presently getting in representation is all we can expect from these blowhards.
Jan 21, 2009 - 10:58 am 28. Fantom:He’s a tax cheat. In short what we have come to expect from democrats. Corruption and fraud. A perfect match for a fraudulent President.
Jan 21, 2009 - 11:07 am 29. Steve:What has this country come to that a situation like this is glossed over by a President of the US as a mere embarassment for his appointee? President Obama should be ashamed of himself for standing by this man. More importantly, where the hell is Geither’s sense of duty to his country? He should have taken his name out of consideration last week vs. continuing this despicable stonewalling.
Jan 21, 2009 - 11:07 am 30. gordo:What happened to penalties and interest?
2002 until 2008, hmmm. Might have been an honest mistake that the IRS did not charge the new tax czar.
I have seen businesses crushed by the IRS for less than Geithnes’s 34k.
If all Americans do not pay taxes, can we all claim it was an honest mistake?
Jan 21, 2009 - 11:27 am 31. choujin:I think it’s unfair that people are trying to make light of Geithner’s tax evasion. Why is he not being sent to prison? I mean, we’re talking about $34K over 3 years. Sure he paid it back along with the associated interest, but why should that matter. Wesley Snipes is in jail for 3 yrs for a $15K discrepancy that his CPA messed up, and he paid the money back with interest as well. Snipes at least could say that he’s a movie star and relied on someone else’s work. Geithner on the other hand, being a financial person, did his taxes himself. I find it hard to believe that “it was an honest mistake” and he didn’t avoid paying those taxes on purpose. He may be “the best person for the job” but even the best can be corrupt (cue Madoff comment). I, for one, do not think he should be confirmed for this position.
Jan 21, 2009 - 11:34 am 32. Annie:I think it was the French premier Georges Clemenceau who famously said, “Cemetaries are full of indespensable men”, and in the spirit of this remark, we have to ask, why is this tax dodger the only guy who can save the economy? It seems dubious that this individual is uniquely qualified. I think it would really be bad for morale at the IRS if the guy at the helm of their organization doesn’t follow the rules. I’m pretty sure that your average IRS accountant would be fired if he or she cheated on their taxes as many years in a row as this guy did.
I think # 13 is hilarious!
Jan 21, 2009 - 11:34 am 33. ((Hiroader2)):Before his appointment I’d like to see him interviewed on these 10 points of issues on a Sunday programing of ” Meet the Press” or ” Face the Nation”… You can tell alot (almost)From watching these personal interviews… (question corporate welfare) So far “transparency” looking kinda murky.., The U.S.Treasury of all or any government office.., In this time of economic vioation & abuse during the Bush terms.., Shouldn’t be subjected to this kind of accountability… America’s lost its rational minds..
Jan 21, 2009 - 11:36 am 34. Anton:30. gordo: I wouldn’t suggest trying that, remember the elite play to a different set of rules.
Jan 21, 2009 - 11:40 am 35. Libertyship46:What bothers me is if Geithner is so “brilliant,” then why wasn’t he sounding the alarm about this financial meltdown two years ago? As a prominent player in the Federal Treasury, didn’t he see what was happening and didn’t it bother him? Should he have at least raised a few questions about banking improprieties or the lack of oversight at Fanny May or Freddie Mac? Not paying your taxes is bad enough, but being asked to clean up a financial mess you didn’t see coming in the first place seems even worse.
Jan 21, 2009 - 11:44 am 36. Just Some Guy:Very good commentary. The most important problem with the nomination, though, is this: is there someone better? Given Geithner’s obvious problems (not least the fact that he doesn’t really appear to be terribly bright), shouldn’t the Senate hold out for a more impressive nominee?
There’s no right to this position, and Obama has no right to get whomever he chooses. Obama won’t suffer unduly if the Senate rejects this loser.
Jan 21, 2009 - 11:57 am 37. Anton:I grow tired of “brilliant” people that are dishonest. I would rather have some decent fellow who will work hard on our behalf than some genius that is trying to scam the system.
Jan 21, 2009 - 12:11 pm 38. Ann:What about the young Indian (Asian subcontinant, not Native American) guy who was working with Paulsen? Let’s see–I know (I just googled him) Neel Kashkari? This guy seems really sharp. What about him?
Jan 21, 2009 - 12:16 pm 39. Mike M:The deduction he took for the summer camp as a day care expense is EXPRESSLY PROHIBITED IN THE IRS CODE! That’s out and out tax fraud. Even Leona Helmsly is jealous in her grave thinking, “I could have been a contender!”
Jan 21, 2009 - 12:31 pm 40. persiflage:I don’t mind if Mr. Geithner assists the nation via consultation to the President and Economic advisers – and if he is truly that smart and experienced, he ought to do that for the good of the Nation, as a consultant. But he appears to be ethically unsuitable to hold the position of Secretary of the Treasury in the United States – he’s a multi-year tax cheat.
Jan 21, 2009 - 12:53 pm 41. Citizen70:I am so outraged by this nomination! Obama and Geithner have become BFFs and, therefore, this is what will determine if he becomes confirmed. Never mind that the nominee is a thief. I used to be a liberal on the verge of socialism but now I’m getting sick and tired of my hard-earned money being taken by government officials who are not doing their job properly.
Jan 21, 2009 - 1:05 pm 42. MattinVA:Geithner knowningly violated the laws he will be swearing to enforce as Treasury Secretary. He was responsible for oversight of the situation that Congress and the White House have said was caused by LACK of oversight.
On taxes, Giethner is either 1) a lying tax cheat, or 2) unable to manage his household finances.
On Wall Street, Geithner is either 1) colluding with rich corporations and helping himself and the CEOs get rich, or 2) incapable of spotting major systemic problems and correcting them.
Do ANY of these sound like good options for our next treasury secretary?
Jan 21, 2009 - 1:29 pm 43. Marc Malone:I disagree with the posters here. I think he is uniquely qualified for the position. He’s a crook. He BELONGS on Obama’s team. Expect more guys like him. I’m not joking, either. I hope Obama keeps nominating more guys like him. I hope he fills every slot in his administration with scumbags. Eventually, it will filter down to the average taxpayer just what they have done!
Along that line, I’m tired of people saying we should be loyal opposition. We should be the party of “No!” Vote no every time in Congress, so that the Dems have to absolutely own everything! They are really good at blaming the Pubs for all that goes wrong. Don’t give them a scapegoat. Vote no. Every time. Criticize their policies every day. Make noise.
Aslo, don’t help the recovery. Obama and the Dems have to do it without your help. Clinton made a mess the first couple years. Then the Pubs took over Congress and fixed things. Clinton got the credit for the fix, while Pubs got the blame for the process which shut down the government. No more. Let the Dems fail, or the Pubs will be consigned to permanent minority party status like they were once FDR got elected. To speed the process, we have to vote no… or better, abstain… on everything. The public needs to see that Dem policies do not work, period. Don’t let them blame the Pubs.
Jan 21, 2009 - 1:31 pm 44. BERLET98:You want disturbing? Try this:
Obama’s Gay Agenda
“President Barack H. Obama is poised to be the most pro-homosexual chief executive in history:” (http://www.cnsnews.com/public/content/article.aspx?RsrcID=42233)
“While we have come a long way since the Stonewall riots in 1969, we still have a lot of work to do. Too often, the issue of LGBT rights is exploited by those seeking to divide us. But at its core, this issue is about who we are as Americans. It’s about whether this nation is going to live up to its founding promise of equality by treating all its citizens with dignity and respect.”– Barack Obama, June 1, 2007
Faithful to that promise of candidate Barack Obama, President Barack Hussein Obama has begun dismantling America’s social foundations with plans to repeal the Defense of Marriage Act (DOMA) as well as changing other established policies with regard to the lesbian, gay, bisexual, transgendered (LGBT) communities. These are outlined in a detailed posting on the White House website: http://www.whitehouse.gov/agenda/civil_rights/.
Headed with the above 2007 quotation by Obama, under the category, “Support for the LGBT Community,” the plan incorporates efforts to:
Expand Hate Crimes Statutes: . . . President Obama cosponsored legislation that would expand federal jurisdiction to include violent hate crimes perpetrated because of race, color, religion, national origin, sexual orientation, gender identity, or physical disability. . .
Fight Workplace Discrimination: President Obama supports the Employment Non-Discrimination Act, and believes that our anti-discrimination employment laws should be expanded to include sexual orientation and gender identity. . .
Support Full Civil Unions and Federal Rights for LGBT Couples: President Obama supports full civil unions that give same-sex couples legal rights and privileges equal to those of married couples. Obama also believes we need to repeal the Defense of Marriage Act . . .
Oppose a Constitutional Ban on Same-Sex Marriage: President Obama…
(Read the rest of this article at http://genelalor.com/.)
Jan 21, 2009 - 3:10 pm 45. Largebill:As others have said he is ethically unsuitable for this position. With 300 million Americans we should be able to find someone who pays their taxes to oversee the IRS.
Senators who vote for confirmation should be voted out of office at the next opportunity. With that in mind, call the offices of those up for election in 2010 as they should be most worried.
Separately, hearing that supposed conservatives like Krauthammer and Hewitt consider this not disqualifying makes me wonder if they have tax issues of their own. Hmmmm?
Jan 21, 2009 - 3:38 pm 46. Orion:The real problem of course is that you have to wonder at Obama’s reason for nominating him. The fact that he cheated on his taxes should automatically disqualify him on a simple competency basis. With tens of thousands of competent economists, businessmen, and bankers in this country there’s simply no justification for advancing his candidacy unless Obama has an ulterior, hidden agenda. Is there some kind of quid pro quo going out here? Is Obama a product of the corrupt and self-serving Chicago political machine? Do fish swim in the ocean?
Jan 21, 2009 - 4:31 pm 47. too late:why this guy? we the people simply do not need this type of sociopath in the administration. i predict big time problems in the future with him, as he will get caught again.
Jan 21, 2009 - 5:10 pm 48. Debbie:Ron Paul is the only one who is honest and understands and challenges the status quo of the wall street banksters. He would have been a great Sec. of the Treasury! The Fed would be abolished the first day on the job.
Jan 21, 2009 - 6:13 pm 49. myth buster:I don’t want him in jail- too expensive. Just impose a $25000 fine for fraudulent filing for both 2001 and 2002, and then interest on top of that. Then, disqualify him from any place of public trust.
Jan 21, 2009 - 7:52 pm 50. Robert Hurley:I noticed that even Pat Roberts said to Geithner today that he would be confirmed. He must be a socialist at least by the logic evidenced here
Jan 21, 2009 - 9:11 pm 51. Dave:Well, Dear Leader did talk about transparency. Its pretty transparent that this guy is a crook.
Some change.
-DAve
Jan 21, 2009 - 11:31 pm 52. paul_unalaska:Robert Hurley – have you ever made a lucid, productive comment/ suggestion? You’re content with. No, you proudly jump at the chance to be a fly in the ointment. For what? Your insipid, brainless banter truly border on mentally incompetence.
Resolution? Find yourself a partner. Join a gym. I don’t believe you get near enough oxygen to your gray matter, buddy.
Jan 22, 2009 - 1:10 am 53. Linda Mae:The man is also guilty of fraud for taking the reimbursement money from IMF after signing documentation that he had paid the taxes. So – tax evasion and fraud. Yeah! Send a thief to catch a thief. Maybe he would do well in the post. On second thought – nah! Shame on Obama for allowing Tim to continue. Shame on Congress for not being angry at his crimes. Shame on the media for not reporting the fraud as well as the tax evasion.
Will IMF file criminal charges for his fraud? They should.
Jan 22, 2009 - 1:24 am 54. cluelessinky:As one who lost a business due to a tax “oversight” I have very little sympathy for Mr. Geithner. I was given the option of paying ( with substantial penalties and interest,) or face prosecution. I think that Mr. Geithner should have been given the same choice, before being denied the appointment.
The fact that the senate in its wisdom will approve his nomination lessens the very little faith I still have in this government.
Jan 22, 2009 - 5:44 am 55. TomD:Kill two birds with one stone, Get Geithner confirmed and make Charlie Rangle’s tax cheating ways seem like no big deal.
Neither are fit to serve. But they are DEMOCRATS so there is no measure of character that applies.
Jan 22, 2009 - 6:10 am 56. WestGuard:So, Obama said we need change! We need an open honest government that the people can trust and believe in…. then, he nominates a crook, that’s been ripping off the IRS for years, to be in charge of the IRS?!?!
How can Geithner be considered fit for the position after breaking the law year after year? How can the people who would work under him have any respect for him? How can he tell his team to crack down on tax evaders when he himself would be the pot calling the kettle black?
There are plenty of other people with not only the expertise for the position but also with the ethics needed to ensure the publics trust.
If Geithner had any decency he would decline the position and quietly slink away, and Obama should then appaud Geithners moral fortitude and admit he himself made an error in judgement by nominating the bum. That’s the kind of “change” that would be welcome, but of course this won’t happen.
Jan 22, 2009 - 10:02 am 57. Robert Hurley:I hate to let you know but the committe approved his nomination 16-5. You are going to have to find something else to whine about now
Jan 22, 2009 - 1:09 pm 58. Jay:Geithner kept the NY Fed research staff in the dark as he worked with Paulson and Bernenke on the bailouts. He is a lawyer and not an economist nor a banker.
Jan 22, 2009 - 2:36 pm 59. paul_unalaska:Volker is old and he likes still being in the inner circle of the DC bandits.
Robert, I teach econometrics. I predicted the crisis over three years ago from what I was learning and reading about the system. But I was not part of the Wall Street – DC plutocrats.
Robert Hurley, (aka ‘Captain Obvious’) you are lightning quick! Thanks for letting us know the final say. Let us know who won the most gold medals in the 2008 Beijing games? I gotta know!
Your comment regarding ‘16-5′ and Pat Roberts. ‘It was 18-5, Professor. Oh, and those 5 nay votes.. The five senators who voted “no” are: Charles E. Grassley of Iowa, Jon Kyl of Arizona, Jim Bunning of Kentucky, Pat Roberts of Kansas and Michael B. Enzi of Wyoming.
Thanks for the ‘breaking news.’ haha
Jan 22, 2009 - 3:25 pm 60. Director:Robert Hurley wrote:
“By all reports… ”
WHAT reports, specifically?
“the vast majority of economists and politicians think he is the right man for an incredibly difficult job.”
LOL! You BS yourself and then BS us by writing about “the vast majority” of economists and then you cite ONE GUY, Paul Volcker! Hint: Volcker doesn’t count as “the vast majority of economists.”
Geithner studied “government” at Dartmouth and then studied more “government” at Henry Kissinger & Assocs. He has ZERO background in economics — he knows very little about the subject, just as Henry Paulson knows very little about the subject (Paulson recently stated in an interview, “I’m not an economist…”). Geithner may or may not know something about finance, which is not the same thing at all as economics. However, given the fact that several major I-banks failed on his watch as head of the NY-Fed, it seems he’s not too brilliant at finance, either.
I love that the left is so easily impressed (caused, no doubt, by its unrelenting narcissism): Geithner says nothing clever in any interview, then says something quite stupid and evasive about his failing to pay taxes, and also has a poor job-performance record at the NY-Fed, and everyone on the left cries, “Look how BRILLIANT the guy is! Why the vast majority of economists and politicians are SINGING HIS PRAISES!”
The truth about Geithner is that he has no special abilities whatsoever; he is quite simply what is known as an “insider”: his daddy, Peter Geithner, worked for a leftist group that cultivates insiders — the Ford Foundation — on a program that was being developed by Barack Hussein Obama’s mommy, Ann Dunham-Soetoro. It’s all here:
http://en.wikipedia.org/wiki/Timothy_F._Geithner
“From all evidence, Geithner is a brilliant guy who made a stupid mistake.”
WHAT EVIDENCE? Tell us what Geithner has done, written, said, or accomplished, that you believe him to be “brilliant.”
Geither is just a typical policy wonk; an ordinary leftist “insider” who thought he could get away with non-payment of taxes until (i) he was audited (after which point he paid half of what he owed), and (ii) he was tapped to be SecTreas (at which time he paid the other half).
The ethics here are sort of like those of Bill Clinton (who claimed in paraphrase “I philandered with Monica Lewinsky and then lied about it because I could”), and Eliot Spitzer (who claimed that he was resigning as NYS governor because he “failed to live up to his own high standard” — yeah? he would have failed to live up to his own high standard whether or not he had been caught, so why did he only decide to resign AFTER he had been caught?).
In other words, Geithner — like Clinton and Sptizer — has no ethical core. He’a complete moral pragmatist; the perfect sort of man for a socialist government.
Jan 22, 2009 - 8:02 pm 61. Jim Baker:Has anyone else watched this guy on TV? Did the Dims say HE is the only Dim who understands the damned bailout package? This is going to be even worse than I thought. What a tool. Robert Hurley, I would trade you John McCain for a yellow dog, if I could and you know of one.
Jan 22, 2009 - 8:52 pm 62. Terry Jones:GEITHNERS FATHER PETER WAS A CLOSE FRIEND AND CONFIDENT OF OBAMA’S MOTHER. Anne Dunham and Peter Geithner were close friends. That is why Obama is pushing for the Geithner appointment. Just the same old Chicago way.
Jan 22, 2009 - 9:27 pm 63. Robert Hurley:Terry J – Glad to hear all this inside information. Maybe Peter Geithner was really Obama’s real father and he has just darkened his skin to get votes. There is no end to the fantasy here. But it is good to see you all spinning your wheels here while the real work of governing goes on. What a bunch of harmless cranks!
Jan 23, 2009 - 7:48 am 64. gnatsandcamels:What gives? Since when do “qualifications,” such as they are, matter anyway? According to Reich, no white guy should be given a job. So Reich should resign as well. Bring back Raines!
Jan 23, 2009 - 10:35 am 65. Kevin R.C. O'Brien:Well, Tax Cheat Tim is in, but that’s the only way I can see referring to him from here on out.
No surprise he was confirmed, given that Congressmen and Senators of both parties are all self-serving cheats — how could they turn him down? Most of them are frantically steering bailout money to themselves, family members, college pals and the ever popular strippers and rent boys. Elliot Spitzer must be bursting with envy.
By the way, someone said Tax Cheat Tim Geithner didn’t pay interest and penalties when he was caught cheating (first by the audit, then by Obama’s background-check team). Not entirely accurate. Tax Cheat Tim did pay the interest, but did not have to pay the penalties. That was his new subordinates in the IRS rushing to suck up to him. If you were a tax cheat, or even if you made an honest mistake (and like Geithner kept making it for over 15 years?), you can bet your devalued dollar you wouldn’t get the same deal.
What you can expect from Tax Cheat Tim now is an all-out effort to line his own, and his pals’, pockets. What we can continue to expect from the IRS is one set of marshmallow rules for insiders and one set of corporal punishment rules for the rest of us chumps. Change we can believe in!
Jan 23, 2009 - 1:15 pm 66. Plato:—2. Robert Hurley:—By all reports, the vast majority of economists and politicians think he is the right man for an incredibly difficult job.—
The same politicians who passed laws removing and/or lessening oversight over major institutions including institutions such as Fanny and Freddy who were CREATED BY THE FEDERAL GOVERNMENT to begin with and REQUIRING lenders to make loans to people who could not possibly do anything other than default on said loans?
The same vast majority of economists who bought these “toxic” mortgages that were bundled up and sold like slabs of putrid meat which overinflated the stock market, the housing market and all other markets irrevocably tied to those (commodities, construction, etc) ultimately leading to the foreclosure of thousands upon thousands of homes, the collapse of banks that had previously weathered World Wars, and the decimation of IRAs and 401ks; the only real source of retirement for countless thousands of Americans?
The same vast majority of economists and politicians who created this mess? You actually trust the opinions of the people who CREATED this stinking pile of **** to actually CLEAN UP THE ****?
To say you are naive is an understatement.
—Robert Hurley:—I admit that the failure to pay the taxes is disturbing,—
You really believe that eh? Well I will tell you what 5 minutes of research on the IRS website would have already told you: This was not a case of him simply “failing to pay the taxes.” No, this man perpetrated what is known as TAX FRAUD.
To think he did not know any better means you are either ignorant of IMF policies (they broadcast this to ALL employees who qualify for IMF tax reimbursement for their native country) or you know better and simply do not care.
The IMF cut checks to this thief to cover his tax liability generated from his IMF salary. He was then required to send those checks to the IRS. He kept those checks. This is how I understood the matter. To be safe I called my friend who works in the CFO’s office of the Internal Revenue Service in D.C. When I asked her if this could possibly be a mistake she replied: “No, this is text book fraud.”
To add insult to injury, he only paid approximately HALF of his tax liability because he waited until the statute of limitations expired for a portion of his liability and the IRS allowed him to do this because he has powerful friends in the Congress (at the time) and now the White House.
Welcome to CHANGE: the difference between what he OWED and what he PAID the IRS.
—Robert Hurley:—but if he is the best man for the job, he will be confirmed.—
How could a man who defrauded the United States Government and therefore the United States tax payer, who would head the Treasury Department, the largest Department in the USG after the DOD and US Military, which includes the I.R.S. and the Secret Service; possibly be the best man for the job?
Paulson is an idiot but stupidity is not a crime; FRAUD and tax evasion are!
—16. Robert Hurley:—Rusty – Mr. Geithner gets a strong endorsement from Paul Volcker, who spent two terms as chairman of the Federal Reserve and was recently chosen to lead President Barack Obama’s Economic Recovery Advisory Board. Mr. Volcker praises Mr. Geithner, saying he is ideally suited for the Treasury post. Among other qualifications, he points to his years of experience as head of the Federal Reserve Board of New York — “a position I once held,” he notes.—
You actually have that bass ackwards: the fact that Volcker speaks so highly of Geither means that either Volcker is an IDIOT or he is bought and paid for.
—Robert Hurley:—I guess we should value your opinion more than Paul Volker’s—
Let us play a game: which Logical Fallacy did you just use as a crutch for your last argument?
—21. Robert Hurley:— From all evidence, Geithner is a brilliant guy who made a stupid mistake.—
Apparently you are ignorant of the evidence on this matter. I suggest you acquire an actual education on the matter before commenting further. Or as Lincoln was fond of saying: “Better to remain silent and thought an idiot than to open your mouth and remove all doubt.”
—-Robert Hurley—Not that unusual from my experience.–
You are right; tax evasion and FRAUD are quite common to the IRS and, ironically enough, 99% of those caught say it was just a stupid mistake.
—Robert Hurley—I agree he should be questioned, but from all evidence I have seen, no one is going to deny him the position as this stage of the financial disaster.—
Of course he will be confirmed: those who appointed him and those who will confirm him are JUST as crooked and corrupt as he is. “Birds of a feather will flock together.”
—57. Robert Hurley:—I hate to let you know but the committe approved his nomination 16-5. You are going to have to find something else to whine about now—
So pointing out that the man who will now head the Treasury Department is a CRIMINAL who perpetrated FRAUD is now “whining”? So much for the rule of law eh boyo?
—63. Robert Hurley:—
Terry J – Glad to hear all this inside information. Maybe Peter Geithner was really Obama’s real father and he has just darkened his skin to get votes. There is no end to the fantasy here. But it is good to see you all spinning your wheels here while the real work of governing goes on. What a bunch of harmless cranks!—
They may be HARMLESS cranks but the man who now has the power to order audits and really COME DOWN HARD on ANYBODY he so desires is a demonstrated THIEF and LIAR. You may be able to sleep well at night knowing this but this would be due to the fact that you are an idiot or you are as crooked as he is. Well, to be fair, there is a chance you are a bit of both.
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—-35. Libertyship46:—What bothers me is if Geithner is so “brilliant,” then why wasn’t he sounding the alarm about this financial meltdown two years ago?—-
This is really going to bother some people and rattle their noodles but who is the one person who was actually sounding alarm bells about this impending crisis who was demonized, ignored, and, ultimately, blamed entirely for this entire affair (even though it was out of his hands):
George W. Bush. How about that? I even kept the N.Y.T. articles where they all but labeled him a moron when he spoke out about this very issue a few years ago. My what short memories these fools have.
Jan 23, 2009 - 9:29 pm 67. johnjack:WERE DO WE FIND THESE THEIVES FROM ??? YOU STEAL AND CHEAT THE GOVERNMENT, YOU STOLE TAXES FROM US, THEN YOUR REWARDED WITH THE JOB OF ” MINDING THE STORE ” WITH A HUGH REWARD ???????? YUOU AIN’T SEEN NUTTON YET !!!!!!!
Jan 24, 2009 - 11:31 am 68. gnubi:Someone in Congress should apologize to Kimba Wood and Linda Chavez for failure to pay the household help’s social security. Apparently, you must be white, male, AND Democrat to qualify for the somewhat looser standards.
Jan 24, 2009 - 1:38 pm 69. gnubi:Apparently, the people who don’t pay taxes because they’re too poor, the ones who don’t pay taxes because they know they can get away with it, and the ones who are pocketing the bailout money outnumber those of us who are stuck with the bill. What will they do if WE refuse to pay? Anyone ready for a million taxpayer march on D.C.?
Jan 24, 2009 - 1:50 pm 70. gnubi:re 68. Zoe Baird.
Jan 24, 2009 - 1:52 pm 71. Civil Servant:With his tax problems, Geithner would be disqualified to be hired to work for the IRS, but now he will be the HMFIC. Got to be good for morale with the grunts in the agency whose job is to go after crooks like Geithner.
Jan 25, 2009 - 5:14 am 72. Anonymous:STOP THE GEITHNER TREASURY NOMINATION
IT IS AN OUTRAGE FOR SOME ONE WHO DOES NOT PAY TAXES TO BE EVEN CONCIDERED.
IT IS A SLAP IN THE FACE FORUS ALL WHO PAY OUR TAXES ON TIME.
Jan 25, 2009 - 5:49 am 73. judy cecil:putting in tim geithner as our sec. of state is a poor choice if you ask me
Jan 25, 2009 - 11:29 am 74. quasar:he can’t run his own house right why do you think he can be sec. state right
the people picking him him for the position, well it doesn’t say much about their character
other words anything goes when it comes to electing officials to run our country
how does forget to pay their taxes!!!!!!!!!!
if sarah palin had forgot to pay her taxes, she would have been run out of town
on a fence rail
it’s all who you are and who you know how a persons life is handled
The Senate has now done for tax payers what 44 has done for gun merchants. Imagine1
Jan 25, 2009 - 2:34 pm 75. dealemslim:hurley, you got your way. another chicago crook in office. why do you hate freedom so much? why? it’s beyond reason. i don’t get and i don’t want to understand why people like you are so stupid. bad breeding? thats it. i blame your parents. they are obviously idiots that made a little mistake. the mistake being YOU
Jan 26, 2009 - 12:32 pm 76. Bob:“RIGHT” and “WRONG” these are just words. I think you are expecting too much from the administration. Of course, this will no longer apply if our tax evasion in the issue.
Jan 26, 2009 - 4:00 pm 77. Plato:Bob:
Words are not “just words.” Words have MEANING and carry WEIGHT.
You may not be worth your word but a REAL MAN has nothing but his word.
RIGHT and WRONG may be abstract to you now but that changes real fast when somebody tries to steal your property, freedom, or your life from you.
Jan 26, 2009 - 7:45 pm 78. Mr Mogul:The good news is, I only have to pay a part of the taxes that I owe this year. Oh, wait, I already paid my taxes owed this year on my several homes, etc.
Reason being? I don’t prefer to have to wear a state issued prison jumpsuit when I go outside to clean up debris on the highway. I prefer to support the “Adopt a Highway” campaign in our city, and go one weekend a month, with my kids’ school, doing our part to keep this great nation – well, great.
Hopefully, there will be some “change” because I’ve really had my heart set on change, I’m hoping for things to change…..
Jan 29, 2009 - 7:53 am 79. mja:why does no one understand that every person in a position of power, especially politicians, abuse it in some fashion. sadly, that human nature.
none of what is written here is surprising, or a cause for concern. if you want to weed out all of the dishonest, ethically questionable people in gov’t, good luck. there would be no one left to lead.
Feb 4, 2009 - 9:50 am 80. james johnson:I think everyone missed something. The Bank Of International Settlements by “treaty” with host countries will not allow its employees to be taxed. Hence Geithner’s confusion.
Mar 5, 2009 - 12:15 pm