Tim Geithner: Welcome To The Unemployment Line

Tyler Durden's picture

The last rat is preparing to jump from the SS Obamic


Explains why the market just ripped.

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

From Bloomberg:

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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Happy Days's picture

...and then there were none

Just wonder if some are booking the country...?

sabra1's picture

i hope al greenspan comes back! we must give him one more chance to do right!

Caviar Emptor's picture

Now TPTB will hand pick a new fall guy for Treasury. A GS alum perhaps? 

Caviar Emptor's picture

Now TPTB will hand pick a new fall guy for Treasury. A GS alum perhaps? 

mayhem_korner's picture

Any chance DSK could plea bargain his way into the slot as "community service?"  Might be fun.

Mr Lennon Hendrix's picture

A bankster has gotta do what a bankster has gotta do.

ebworthen's picture


I'm sure Hank Paulson has a lovely little island reserved for Timmy, a short boat ride from his.

Oh, yeah, and a big enough of a bankroll to pay the ex. Special Services guys to protect them from "taxpayers".

Hank and Timmy and families will no doubt have special cookouts, and laugh about the "little people" back home over scotch and cigars.  They'll let the hired help have the butts of their cigars and maybe a little cheap rum.


bogdiac's picture

"God bless us, every one!"

Cole Younger's picture

Well, there you have it. Tim dosen't want to be the one to go to Congress asking for another bank bail out when the Greeks default and derivitives the U.S. banks hold explode.

vegas's picture

I'm thinking he takes a consulting position at H & R Block.

Franken_Stein's picture


Also Hillary jumping ship.

Something disastrous must be lurking in the future !


tradewithdave's picture

Will the new SecTreas post on the Treasury's blog?

Dave Harrison

lizzy36's picture

Bernanke for Treasury Secretary. Then we can end the whole charade. He can float the economy by buying Treasuries from himself.

Franken_Stein's picture


Why not ?

Panetta and Petraeus also entering the revolving door CIA/Pentagon.


centerline's picture

"Here, can you hold this bag?..."



Slap That Taco's picture

Holy Shit!

Greenspan is on CNBC, talking coherently for the first time in history!

Says Greece will default or there will be a Euro consolidation, both fxcking things up.

Debt ceiling debate potentially catastrophic.

Talking the ZH book, you guys. 

Careless Whisper's picture

Debt ceiling debate potentially catastrophic.

that's right. just STFU and do what the central bankers say. or they will crash everything.

tradewithdave's picture

Will the new SecTreas post on the Treasury's blog?

Dave Harrison

sbenard's picture

Couldn't have happened to a more deserving stooge!

Undecided's picture

My guess is he is taking the chopper, before being force to take it.

Franken_Stein's picture


You still have Eric Holder, David Axelrod and Robert Gibbs from the original dirty dozen that set out to bring about: "Change you can believe in via The Audacity Of Hope".


Here's my suggestion for new Treasury secretary: Laurence Kotlikoff.

Now that would be a choice !

Alas, too little too late.


Don't worry too much about the prospects of this becoming reality though.

It's as likely as Howard Dean becoming president.


mt paul's picture

who needs a treasury secretary

let the fed run amerikas finances


they already are ......

vato poco's picture

my God. if i recall his conformation hearings correctly, he was our last best hope - the only man on the planet who could save us.

Barneyiknow's picture

Having a job where you have to essentially lie to the public every day must really suck. Don't blame him for wanting out.

Seasmoke's picture

another rat jumping off the SOS OBAMA......now whose signature will be on all those worthless dead presidents

Franken_Stein's picture


Krusty the Klown's.

"This note is legal tender for all waffles, big ones and small ones."


hedgeless_horseman's picture

Krusty: Sorry kids...I don't feel like borrowing billions against your future productivity today. [Takes a drag on his cigarette]

nasdaq99's picture

Overlooked news of the day:  From early this am, Portugal retail sales were down around 7% yoy.

Bam_Man's picture

Austerity, bitchezzzzz!

But they're making their interest payments on time. For now.

buzzsaw99's picture

He's been working very hard for China, maybe he plans to run their treasury into the ground now since they have all the money.

YesWeKahn's picture

The key word is "consider".

PulauHantu29's picture

Gosh, darn...I was hoping Barry would bring back Larry "Weak Dollar" Summers.

FromGaltsGulch's picture

Finally a legitimate reason to rally

GFORCE's picture

Tyler can we have a poll vote for his destination????

SilverIsKing's picture

This is a ploy to incentivize Congress to quickly pass the debt ceiling increase.

crzyhun's picture

Timmy we hardly knew ye!

So long good luck and good bye!!

americanspirit's picture

If Timmy does 'return to private life' I'm willing to bet that there are plenty of people who wouldn't mind encountering him on the street and letting him know what they think of him, violently.

Franken_Stein's picture


Btw, Sarkozy has been pulled by the jacket by an undisclosed man during a public appearance.

The man subsequently was overwhelmed by security detail, handcuffed and arrested.


Pauvre con.

Espece d'imbecile.

Salaud !


Bam_Man's picture

The guy must have really long arms to be able to reach down that far.

Infinite QE's picture

Gideon Gono getting a fast-pass visa to come to Amerika.

gwar5's picture

About time. What a tax dodging weasel.

He needs to go back to China and let them laugh at him again, just like they did in Spring 2009 when he first told them the USA economic plan. They literally laughed him off the stage at the Univeristy of Beijing -- "Show us the numbers!" they shouted and laughed, until he got off the stage. 

He can now bookend it by giving them an update and tell them how nicely it all worked out. I'm sure they also  throw vegetables, if not for Bernanke's food inflation. 


Zymurguy's picture

Timmmuh, leebedow deeebedow leeblowwww!

Must not have been sociali- ahem, progressive enough for Obama.


Silverhog's picture

But but.. Tim's job is not done. There are still small pockets of gainfully employed people making mortgage payments.