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Tim Geithner: Welcome To The Unemployment Line

Submitted by Tyler Durden on 06/30/2011 15:47 -0400

The last rat is preparing to jump from the SS Obamic

GEITHNER SAID TO CONSIDER LEAVING TREASURY AFTER BUDGET DEAL

Explains why the market just ripped.

In the meantime, a cubicle at 270 Park is being prepared.

Treasury Secretary Timothy F. Geithner has signaled to White House officials that he’s considering leaving the administration after President Barack Obama reaches an agreement with Congress to raise the national debt limit, according to three people familiar with the matter.

Geithner hasn’t made a final decision and won’t do so until the debt ceiling issue has been resolved, according to one of the people. All spoke on condition of anonymity to discuss private discussions.

The Treasury secretary has said the U.S. risks defaulting on its obligations if Congress doesn’t raise the $14.3 trillion debt ceiling by Aug. 2. The administration and congressional Republicans are at an impasse in negotiations to raise the limit, which also is tied to efforts to cut the nation’s long- term deficit.

An exit by Geithner would complete the turnover in Obama’s original economic team, with Council of Economic Advisers Chairman Austan Goolsbee scheduled to leave in early August to return to the University of Chicago.

That would leave Obama with two key posts to fill as Republicans are seeking to turn the 2012 election into a referendum on Obama’s handling of the economy and the recovery is slowing. The unemployment rate rose to 9.1 percent in May, according to the Labor Department, and the U.S. economy grew at a 1.9 percent pace in the first quarter, according to Commerce Department figures released June 24.

Geithner, 49, has told associates that he needs a break from government service after dealing with the turmoil that followed the collapse of Wall Street firms including Bear Stearns Cos. and Lehman Brothers Holdings Inc., first as president of the Federal Reserve Bank of New York and then as Obama’s treasury secretary.

Family considerations also are playing a role in Geithner’s deliberations, according to the people. His son has decided to finish his final year of high school in New York.

If Geithner does leave the administration, Obama would be losing a member of his economic team who understands Washington institutions and the New York banking world as well the intricacies of the Chinese economy. Geithner has pressed the Chinese to let their currency appreciate faster to reduce the global imbalances that both he and Obama have blamed for financial uncertainty.

In addition to Goolsbee, who announced his decision to return to the University of Chicago earlier this month, three other top Obama economic advisers already have departed. At the CEA, Goolsbee replaced Romer, who returned to teaching at the University of California at Berkeley last September. National Economic Council Director Lawrence Summers and Office of Management and Budget Director Peter Orszag left the administration last year. Summers returned to Harvard University, and Orszag is now vice chairman of global banking at Citigroup Inc.

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Thu, 06/30/2011 - 20:43 | 1417483 I am Jobe

The IMF joins Bernanke in threatening US legislators

http://www.activistpost.com/2011/06/imf-joins-bernanke-in-threatening-us...

Thu, 06/30/2011 - 20:48 | 1417504 Caviar Emptor

Timmy needs his own game show : Can you come up with a killer name?

I'll start it: The 25 Trillion Dollar Pyramid !! :-)

Thu, 06/30/2011 - 21:44 | 1417626 Trifecta Man

What's My Lineup?

Thu, 06/30/2011 - 21:01 | 1417528 Buck Johnson

Your correct, they are leaving this ship. Because they know that all the things that where done only makest he inevitable implosion of the economy worse, and makes it longer for us to get out of the hyperinflationary depression. You can't print money and buy debt (monetization) without repercussions to the economy. We are seeing the inflation hit our shores for awhile now and it's getting worse. Soon, I sense that they will want a QE3 sometime before christmas. Because starting tomorrow and on, we will see the market become erratic without the printing or "buying" that the fed has been doing for months now.

Thu, 06/30/2011 - 21:14 | 1417560 Atomizer

When Timmy became the Secretary of Treasury, the resemblance of Sonny (Godfather movie) overwhelmed me. Now we are told he will leave after ummm, making some last budget changes. I honestly think his is leaving to save his life/family. Those peeps in brussles have very lofty ideas which don't mesh with the global society, nor America.

As much damage Timmy has cause, I pray for his safety. If your reading this Tim, your not the only one who is going to abruptly leave a high level position. The handwriting is on the wall.

Get the fuck out of dodge, protect your family Tim. The Banker's will take you out. Start singing like a bird and your safety is assured. Use common sense!

That godfather movie clip of you getting setup by brussels.

http://www.youtube.com/watch?v=uWqy6O_axsM

Thu, 06/30/2011 - 22:08 | 1417673 Ned Zeppelin