Of all Obama’s appointments, the most damaging to his credibility with liberal supporters were Lawrence Summers and Timothy Geithner, the chief economic adviser and the secretary of the treasury. Geithner has the air of a perpetual young man looking out for the interests of older men: an errand boy. The older men in question are the CEOs of Goldman Sachs, AIG, and the big banks and money firms. Geithner at the New York Fed had enforced – or, rather, let flow – the permissive policy on mortgages that Summers pushed through in the last years of the Clinton presidency. Summers himself, renowned for his aggression and brilliance, came too highly recommended for Obama not to appoint him. The new president credited his adviser’s belief that there were only a few persons in America who could undo the harm of the mortgage crisis, and it happened that they were the very people who had caused the crisis. The Obama economic team, with its ‘deep bench’ of Goldman Sachs executives, might have done better if mixed with economists of other views like Joseph Stiglitz and Paul Krugman. Obama knew little economics, however, and he took the word of the orthodox. It would have been wiser, from a merely prudential standpoint, to consult Summers behind a screen. But Obama has always craved legitimacy in a conspicuous form.
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