Ignoring Economists, Fox Attacks Geithner's Decision To Stay On As Treasury Secretary
Following the announcement that Timothy Geithner will remain Treasury secretary, Fox News attacked the decision and called for President Obama to make Geithner "walk the plank." However, economic experts have argued against replacing Geithner, stating that "we can't afford the loss in continuity at this stage."
Treasury Dept. Announces Geithner Will Stay On As Treasury Secretary
Politico: "Geithner Will Stay At His Post Through The Fall And President Barack Obama's Reelection Campaign." Politico reported on August 8:
Treasury Secretary Timothy Geithner will stay at his post through the fall and President Barack Obama's reelection campaign, the Treasury Department announced Sunday.
"Secretary Geithner has let the president know that he plans to stay on in his position at Treasury," Assistant Secretary for Public Affairs Jenni LeCompte said in a statement. "He looks forward to the important work ahead on the challenges facing our great country."
White House press secretary Jay Carney added in a separate statement that the president "asked Secretary Geithner to stay on at Treasury and welcomes his decision."
Geithner informed Obama of his decision on Friday, according to a source who was briefed on the discussion. [Politico, 8/8/11 ]
Fox Attacks Geithner, Obama Over Announcement That Geithner Will Remain Treasury Secretary
Huckabee: Obama Should Make Geithner "Walk The Plank." During the August 8 edition of Fox News' Fox & Friends, Fox News host Mike Huckabee stated: "Timothy Geithner has failed the economy, and he's failed this president, and the president needs to have him walk the plank." [Fox News, Fox & Friends, 8/8/11]
Bolling: Geithner's Refusal To Step Down Is "Another Stellar Decision By The Obama Administration." During the August 8 edition of Fox News' Fox & Friends, guest host Eric Bolling said: "[Geithner] announced that he will stay on at least through the end of -- until the 2012 election, maybe longer, and Mr. Obama confirmed that, saying, I asked him to stay, I want him to stay. Another stellar decision by the Obama administration, I guess." During the segment, on-screen text read: "Geithner Refuses to Resign: Keeping Job Despite Historic Downgrade":
[Fox News, Fox & Friends, 8/8/11]
Trump: It's "Time For Obama To Bring In Somebody New." During the August 8 edition of Fox News' Fox & Friends, Donald Trump said, "I think it's time for President Obama to bring in somebody new that knows what he or she is doing." [Fox News, Fox & Friends, 8/8/11]
But Experts Agree: "We Can't Afford The Loss In Continuity"
Zandi On Geithner's Decision: "It's Important For The Nation To Have Some Continuity In Its Economic Policy." In an August 8 Wall Street Journal article, chief economist for Moody's Analytics Mark Zandi stated, "In this time of extreme financial and economic volatility, I think it's important for the nation to have some continuity in its economic policy." [The Wall Street Journal, 8/8/11 ]
Former Bush Treasury Official Praises Geithner's Decision To Stay As Treasury Secretary. The Journal further reported on August 8:
Tony Fratto, a former Treasury and White House official in George W. Bush's administration said Mr. Geithner's "deep experience in dealing with crisis" and longstanding relationships with European financial officials will serve the administration well as it copes with fallout from the European debt crisis.
In addition, Mr. Geithner's decision means the White House won't have to go through a painful confirmation process before the 2012 election. [The Wall Street Journal, 8/8/11 ]
Economist Diane Swonk: "We Can't Afford The Loss In Continuity At This Stage." In an August 8 Bloomberg article, Diane Swonk, chief economist at Mesirow Financial Inc., said of Geithner's decision: "We can't afford the loss in continuity at this stage. ... We're on the brink of another financial crisis." [Bloomberg, 8/8/11 ]
Bank Of Tokyo-Mitsubishi Chief Economist: Geithner's Choice "Is The Right Decision For Him And The Markets." Bloomberg further reported:
Choosing to remain in office "is the right decision for him and the markets," Chris Rupkey, chief financial economist in New York at Bank of Tokyo-Mitsubishi UFJ Ltd., said in an e- mail yesterday. "He has not finished the job yet, as the economic recovery remains fragile and the trillion-dollar deficits have not been tamed. There is no obvious immediate replacement waiting in the wings." [Bloomberg, 8/8/11 ]
Economist Dan Greenhaus: "Geithner Probably Doesn't Want To Roil Markets Any More Than They Have Already Been." From the August 8 Bloomberg article:
"In the middle of this crisis, Geithner probably doesn't want to roil markets any more than they have already been, so it's best to just say you're staying for now, even if you are ultimately planning on leaving," Dan Greenhaus, chief global strategist at BTIG LLC in New York, said in an e-mail. [Bloomberg, 8/8/11 ]