SPEAKING of The Economist, our official assessment of Barack Obama's
Treasury secretary nominee, New York Fed president Timothy Geithner,
is up:
Assuming he is nominated Mr Geithner brings two crucial qualities.
First, he represents continuity. From the first days of the crisis
last year, he has worked hand in glove with Ben Bernanke, the Fed
chairman, and Mr Paulson. He can continue to do so while awaiting
confirmation. If Citigroup, for example, needs federal help, Mr
Geithner will be involved. An unknown when he joined the New York Fed
in 2003, he is now a familiar face to the most senior executives on
Wall Street and to central bankers and finance ministers overseas.
Second, he represents competence. He has spent more time on
financial crises, from Mexico and Thailand to Brazil and Argentina,
than probably any other policymaker in office today. Mr Geithner
understands better than almost anyone that in crises you throw out the
forecast and focus on avoiding low probability events with
catastrophic consequences. Such judgments are excruciating: do too
little, and you undermine confidence and generate a bigger crisis that
needs even bigger policy action. Do too much, and you look panicked
and invite blowback from Wall Street, Congress and the press. At times
during the crisis Mr Geithner would counsel Mr Bernanke on the
importance of the right "ratio of drama to effectiveness".
Ah, glorious, glorious competence. How we've missed you.
http://www.economist.com/blogs/freeexchange/2008/11/meet_mr_geithner.cfm
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