More and more people are calling for Treasury Sec. Tim Geithner's resignation. Among them calling for his resignation include Jim Rodgers, Peter DeFazio,
I particularly like this passage from The New Republic article,
"Finally, on the deficit and unemployment, it's true that Geithner has been outspoken about reining in the deficit. It's also true that dwelling on the deficit can seem beside the point or worse with unemployment stuck in double digits. But it's worth considering the role of a Treasury secretary here. As one Treasury official told me a couple months ago, almost every Treasury secretary embraces somewhat more fiscally conservative views than he actually holds,** because one of the Treasury secretary's jobs is to reassure our creditors we'll pay them back. Were Geithner to suddenly argue that the deficit isn't a big deal--even though there's a strong economic case that we should ignore it for the next year or two and focus on stimulus--the bond markets would probably go nuts. By reassuring the bond markets, Geithner buys the administration a little cover."
Elliot Spitzer lashed out at Sec. Geithner on a recent episode of the Rachel Maddow show especially hitting hard the notion that the Obama Administration owns none of the financial collapse. He basically said that they do in the presence of Sec. Geithner. Spitzer has also written on this matter in The Daily Bail.
A sure sign of his impending departure is the political heat he's drawing to the Obama Administration. Dumping him might reduce that heat, but will it lead to a fundamental change in Administration policy? I suspect that either the Administration will have him resign and we'll also see a greater focus on job creation rather than debt reduction or the Administration won't fundamentally change course. I hope they use his departure as an opportunity to roll out a new approach to the economy.
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