Tim Geithner: Next Steps

Tyler Durden's picture




 

Tim Geithner's public "servant" tenure has not been without its blemishes: from his deplorable run as the (figure)head of the New York Fed (from 2003 until 2009), when the entire financial system literally imploded under his watch, to his epic failing up as Hank Paulson's replacement as treasury Secretary of the United States, despite his legendary inability to navigate the Minotaurian labyrinth that is the TurboTax income tax flowchart, the Dartmouth alum has had his share of run ins with adversity (and adversity won). Of course, Geithner's tenure in charge of the Treasury in the past 4 years has been somewhat mollified by the fact that here too here was merely a figurehead, and the true entity that runs the US printing presses is none other than the JPM and Goldman Sachs co-chaired Treasury Borrowing Advisory Committee (for more on the TBAC read here and especially here as pertains to the former LTCM trader and current head of JPM's CIO group), meaning that the US Treasury, just like the Fed, are merely branches of the one true power in US governance: Wall Street. Geithnerian figureheadedness aside, the one undeniable fact is that Tim Geithner's days as head of the Treasury are now numbered: he has made it quite clear that he will not accompany Obama (should the incumbent be reelected) into his second term. So what is a career "public servant" to do once the public no longer has any interest in retaining his services? Bloomberg's Deborah Solomon has some suggestions...

First, it may come as a surprise to some, that just like virtually every other central planner currently in charge of deciding the fate of billions of people in US and around the world, Geithner has never really had much interaction with real life:

Despite the fact that much of the public -- not to mention some lawmakers on Capitol Hill -- assume Geithner worked on Wall Street, he never has. Instead, he has spent most of his career in public service. Before taking the Treasury post in 2009, Geithner headed the Federal Reserve Bank of New York for six years and worked at the International Monetary Fund. His main private-sector job was at Kissinger Associates Inc.

 

The years in public service -- particularly engaging in diplomacy with domestic and foreign partners -- left a deep impression on Geithner, infusing him with a sense of purpose that he might find lacking on Wall Street (see: "Why I Left Goldman Sachs" by Greg Smith).

The logical implication is that while Geithner's actions were enriching a broad universe of people (read those working on Wall Street, metaphorically of course, as the bulk of financial activity has long taken place in midtown Manhattan), Tim was stuck with a salary which would make a 1st year associate blush (see TurboTax incident above). To wit:

[T]he years in civil servitude have also left Geithner in need of a better salary. Geithner is one of the least wealthy men to head the Treasury Department in recent years. He took more than a 50 percent pay cut to assume the job. His $199,700 salary is higher than the $174,000 earned by most members of Congress. His pay has been increased by $8,400 in three years, yet his net worth pales next to such predecessors as Hank Paulson and Bob Rubin.

 

With two mortgages and two college-age children, the lure of private-sector money could be hard to resist. BlackRock's Fink, for instance, received $23.8 million in salary and stock in 2011, making him No. 1 in the Finance 50, Bloomberg Markets' annual ranking of the best-paid CEOs at the largest U.S. financial companies.

So what is a (quite literally poor) Tim Geithner to do? Will he go back to Wall Street...

The big money is on Geithner heading to the private sector, with private-equity shop BlackRock Inc. (BLK) often mentioned as a potential landing post. The chatter has been fueled by Geithner's frequent conversations with BlackRock Chairman Laurence Fink: The two spoke 49 times over the past 18 months, according to Geithner's calendar. (Fink, it's worth noting, is also mentioned as a potential successor to Geithner if Obama wins a second term.)

 

Less likely, say those who know Geithner, is that he'll end up at a big bank like JPMorgan Chase & Co. or Goldman Sachs Group Inc. This is in part because it would make for "bad optics" (the Obama administration spent the better part of four years chastising Wall Street for its practices while Geithner has been criticized for being too soft on bailed-out banks) and in part because it's not Geithner's style.

Or perhaps go back to academia, where he will spin stories about Magic Money Trees (MMT), and who $22 trillion in US public debt by 2016 is a mere trifle:

Another option for Geithner -- one his own father-in-law recently blabbed about in a New York restaurant -- is to head back to his alma mater, Dartmouth College, to run the university. The departure of Jim Yong Kim to head the World Bank leaves an opening for Geithner (class of 1983), whose father, grandfather and wife are all Dartmouth grads. Kim’s compensation at Dartmouth was $612,768, including a base salary of $419,754, as of year-end 2010, according to Bloomberg News. That's not a BlackRock-sized paycheck, but it's a raise. Still, it's unlikely he'd move to New Hampshire before his son leaves for college.

For now nothing has been decided:

Those who know Geithner say he's unlikely to rush into anything and will probably take some time -- maybe six months -- before taking a new job. Meantime, he could earn money by giving speeches and writing a book (he has publicly ruled out the book, but he could reconsider).

There is, also, a scenario that Geithner will continue "serving the public" for an indefinite period of time even after the election:

Still, in news he no doubt already knows, Geithner may not be going anywhere for a little while. Assuming Obama wins a second term, the administration is expected to nominate someone quickly to head Treasury, but confirmation depends on the Senate. With the debt ceiling and fiscal cliff fast approaching, Geithner may have to stick around and aid that process until the Treasury nominee gets the Senate's (sometimes slow) blessing.

Of course, as everyone knows but is terrified to admit, at this point the US, and global, financial system, are both beyond salvaging, with can kicking the only (non) option left. Therefore, the only hope is to let the status quo do what it does at an ever faster pace (transfer an ever greater amount of wealth from the middle classes to the kleptofascist oligarchy until, quite soon, there is nothing left), in the process finally destroying everything, and most importantly, itself, once the second coming of the Bastille day is official. That this is the only real chance for a fresh start left should be clear to everyone. Which logically means, that the best option for all may well be to just leave Tim Geithner "in charge."

After all what better way to hit peak systemic self-cannibalization and reach complete, wholesale destruction of everything and anything?

If anyone has a more responsible idea, we are all ears...

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 11/05/2012 - 16:47 | 2949709 slaughterer
slaughterer's picture

Doesn't this guy have to figure out some of his back taxes first before getting his cubicle at BlackRock?

Mon, 11/05/2012 - 16:49 | 2949717 fightthepower
fightthepower's picture

Fuck You Timmy, Fuck you Bernanke, Fuck you Rothschilds!

Mon, 11/05/2012 - 16:51 | 2949720 Kitler
Kitler's picture

There is, also, a scenario that Geithner will continue "serving the public" for an indefinite period of time even after the election:

Professional organ donor would seem appropriate.

Mon, 11/05/2012 - 16:57 | 2949742 nope-1004
nope-1004's picture

Geithner is a loser, sucking off the taxpayer tit his whole life.  How much did he, do you think, contributed to national GDP over the years?  Anything?  I submit, ZERO.  He's a first class suck.

Would love to kick him in the nuts.

 

Mon, 11/05/2012 - 16:57 | 2949746 SilverTree
SilverTree's picture

"No risk of that"

-TG

Mon, 11/05/2012 - 16:59 | 2949750 icanhasbailout
icanhasbailout's picture

I say we hand him over to China.

Mon, 11/05/2012 - 17:02 | 2949762 knukles
knukles's picture

Timmah's next steps?
When'd he learn to walk?

Mon, 11/05/2012 - 17:28 | 2949849 NotApplicable
NotApplicable's picture

"His main private-sector job was at Kissinger Associates Inc."

LOL, that's about as far away from private-sector as you can get.

Mon, 11/05/2012 - 17:40 | 2949881 Richard Chesler
Richard Chesler's picture

Must've been before he took the position of "Jamie's lackey".

 

Mon, 11/05/2012 - 17:55 | 2949921 Ying-Yang
Ying-Yang's picture

I'd bet he opens up a GMC dealership.

Mon, 11/05/2012 - 18:00 | 2949931 francis_sawyer
francis_sawyer's picture

Jews don't drive Chevy's... They dismantle manufacturing & distribution operations & keep the money for themselves...

Mon, 11/05/2012 - 23:30 | 2950809 wee-weed up
wee-weed up's picture

Little Timmy is just thanking his lucky stars the shit-hiting-the-fan did not happen on his watch.

Mon, 11/05/2012 - 17:10 | 2949785 redpill
redpill's picture

Well somewhere there is a village missing its idiot that is anticipating his grand return.

Mon, 11/05/2012 - 17:59 | 2949933 ChanceIs
ChanceIs's picture

Good Sir,

I think you have that all wrong.  Don't you mean that something, somewhere is missing its USEFUL idiot?  No wait.  That's what Timmah has been doing these last four years (oooooops that would be about 12 if you count NY Fed as time served).  Hmmmm.  Where else can Timmah go and be a useful idiot?  Dartmouth is still a good school.  They expect some production.  Timmah might get a sinecure with a 20th floor window office at GS.  Couldn't get into too much trouble.  What did Hillary say.... "It takes a village to raise an idiot?" Ah well.  So much for not mixing my metaphors.  

Mon, 11/05/2012 - 19:09 | 2950143 Offthebeach
Offthebeach's picture

A job for Timmmah?

Fluffer.
Can you imagine how much a representative for a Chinese Sovereign Wealth Fund would love being fluffed by a former United States Secretary of The Treasury, on his knees under a Goldman Sacs mahogany table?
What other firm could offer a client ...such a welcome?

Mon, 11/05/2012 - 19:53 | 2950282 SafelyGraze
SafelyGraze's picture

Tim,

There's a place for you in the visa rewards program. 

They sent me a letter today. No shit. 

Reward yourself, it says.
Your access to rewards in right in your wallet, it says.

Every time you make a purchase with your credit card you earn QuickPoints(tm) -- one point for every dollar, it says.

You can redeem them for gift cards from over 50 participating estabishments, it says. 

Points! Like fema dollars. or bitcoins. or ebt dollars. or federal reserve dollars. redeemable at participating establishments.

You can run this program, Tim. You can give it wings. Digital points that are classified as earned income, earned by spending with credit.

Taxable earned income, denominated in "points".

You can create a market, Tim. A market where computers bet on the conversion rate between "points" and tactical socks from Dillards, Norstroms, or Nieman Marcus.  

If you have more questions, Tim, you can call them at their 888 number. 

Think about it, Tim. Reward yourself. 

Mon, 11/05/2012 - 17:35 | 2949867 Buckaroo Banzai
Buckaroo Banzai's picture

Hand him over to China? He's been in their hip pocket ever since he took the job.

Mon, 11/05/2012 - 17:38 | 2949876 55 men
55 men's picture

OFF TOPIC: 

My wife told me she bought me something cool about 3 weeks ago...It came today. ZeroHedge zip up hoody, totally bad ass, I had no idea. Now all I need is my guy fawkes mask.

Mon, 11/05/2012 - 17:57 | 2949927 Ying-Yang
Ying-Yang's picture

Talk about a bullseye on your back... chuckle maybe wife will like the hoodie late nites?

Mon, 11/05/2012 - 18:28 | 2950014 55 men
55 men's picture

In my opinion, if your gonna be a sheep be the black one. 

Mon, 11/05/2012 - 18:02 | 2949940 ChanceIs
ChanceIs's picture

I couldn't get my wife to go for the ZH thong.  You know...the one that has the warning..."Contains Zero Hedge."  I thought it was funny.  The wife didn't see it that way.

Mon, 11/05/2012 - 18:26 | 2950004 chunga
chunga's picture

I'll be wearing my ZH cap tomorrow when I go to cast my vote against the weasel pigs.

Mon, 11/05/2012 - 16:57 | 2949745 malikai
malikai's picture

When people receive organs, particularly the heart, it is common for the recipient to experience behavior changes mimicking the donor.

Mon, 11/05/2012 - 17:03 | 2949764 waterhorse
waterhorse's picture

Who would want to become a pathological liar and a bank CEO fellator/cornholee?

Mon, 11/05/2012 - 17:00 | 2949757 hedgehog9999
hedgehog9999's picture

I am with you 100%. This cocksucker is a disgrace to the human race.

Mon, 11/05/2012 - 18:01 | 2949936 Ying-Yang
Ying-Yang's picture

So true... I believe Timmy will hookup with Hank Paulson and start calling him Daddy!

Mon, 11/05/2012 - 18:53 | 2950086 Chupacabra-322
Chupacabra-322's picture

@ fightthepower,

It just goes to show you that in America an organized crime cabal is put in charge. They are a self serving total economic waste. Somebody has overthrown certain aspects of your government and they are flaunting their power over people of the world. America has grown very soft against the criminal elite, helping them to traffic weapons to known terrorists. It looks like the White House has lost all moral discretion and merely goes along with the criminal terrorizing of other soverign nations.

It is like they are being black-mailed by the banker cabal. They will take your freedoms and impose a communist Chinese like model to allow control freaks to lord-it-over you. But with these corrupt evil globalist power structures what can you do. Big government wants to go around the world murdering people — that is how the sickos get off. They think they are god with their power to murder people. A world of freedom and harmony scares the war-demons and psychopaths.

They are supporting causes they are supposed to defend against. The Empire becomes a Zombie Monster, following a negative agenda against man on Earth. The government is out of control, if it even exists. America is being divided and conquered from within, by the global demons.

They merely represent a power structure of a Step Pyamid Model of Aurthority / Monarch Reign Pyamid Model of Authority which ultimately benefits the NWO Globalite who own the Economic, Educational, Religious and Political Systems which Enslave man.

Mon, 11/05/2012 - 17:05 | 2949718 no taste
no taste's picture

The next step is war, of course.  Maybe Timmy could be on the front lines serving his masters some more.

http://howstupidare.blogspot.com/2012/08/how-stupid-are-americans.html

Mon, 11/05/2012 - 17:01 | 2949759 FL_Conservative
FL_Conservative's picture

Tim Geithner: voted most likely to "Corzine" his next business endeavor, by those of us with critical thinking skills.

Mon, 11/05/2012 - 17:21 | 2949818 oldfruit1
oldfruit1's picture

He has been ineffectual yes, like most civil servants, however perhaps ZH paradigm that everyone chooses to do things based on money is wrong .. I used to work on wall st with a large paycheck but left to go back into teaching which is relatively poorly paid :( some people do care about things apart from money you know!

Oldfruit

Mon, 11/05/2012 - 22:43 | 2950708 no taste
no taste's picture

By leaving you demonstrated an exceptional trait.  My guess is you were not running the Vampire Squid.  Blankfein isn't leaving  to teach poor kids how to play three card monty (well, not by choice).

Did it occur to you that Timmy might have the job that he has because he is incompetent?

Mon, 11/05/2012 - 22:58 | 2950740 Grill Boss
Grill Boss's picture

No

Mon, 11/05/2012 - 16:48 | 2949711 jeff314
jeff314's picture

Fuck you Timmy and fuck you Bernanke

Mon, 11/05/2012 - 16:49 | 2949715 CrimsonAvenger
CrimsonAvenger's picture

What about starring in Eraserhead 2?

Mon, 11/05/2012 - 16:49 | 2949716 UGrev
UGrev's picture

Next steps? how about you take them by walking in front of a bus.. 

Mon, 11/05/2012 - 16:50 | 2949719 monopoly
monopoly's picture

Giving speeches. You mean there are people that will PAY to listen to his bullshit. The guy cannot even do his own taxes correctly. You want me to listen to him speak. Oh my. Now I have heard it all.

Mon, 11/05/2012 - 17:14 | 2949792 ziggy59
ziggy59's picture

Oh, he did them correctly, alright.
Did he pay his penalty?

Mon, 11/05/2012 - 16:50 | 2949721 buzzsaw99
buzzsaw99's picture

The last paragraph is pure gold. galt + gandhi is the way to go. Let it all fail.

Mon, 11/05/2012 - 16:52 | 2949730 Chupacabra-322
Chupacabra-322's picture

This guy's still alive?

Mon, 11/05/2012 - 16:55 | 2949741 orangedrinkandchips
orangedrinkandchips's picture

worthless cocksucker.

 

(disclaimer: nothing wrong with cocksucking....it's not going to suck itseslf!)

Wed, 11/07/2012 - 22:41 | 2959129 AgShaman
AgShaman's picture

On the cusp....of doing "God's Work"

The world can always use another 'cocksucker'

Mon, 11/05/2012 - 16:57 | 2949747 Unprepared
Unprepared's picture

Corzine for Treasury Sec,

Krugman for Fed Chairman

 

America, making sure it all ends in flames, tears, lots of broken windows and vaporized dreams,

Mon, 11/05/2012 - 17:07 | 2949778 knukles
knukles's picture

Stop it
Stop it
Just fucking stop with it already.
Gonna have enough of this shit after the election.
For real

Jesus man...
Have some compassion.

 

Please

Mon, 11/05/2012 - 17:15 | 2949795 Unprepared
Unprepared's picture

Oh, does it really hurt when I turn that knife in your wound?

Mon, 11/05/2012 - 17:31 | 2949848 Bay of Pigs
Bay of Pigs's picture

I want the William Dudley and Jamie "Legs" Dimon at the helm of the FED and UST...

That would be GOWLED!

Mon, 11/05/2012 - 17:34 | 2949866 Uncle Remus
Uncle Remus's picture

needs more salt...

Mon, 11/05/2012 - 17:22 | 2949825 buzzsaw99
buzzsaw99's picture

Let it burn.

Mon, 11/05/2012 - 16:58 | 2949748 Chupacabra-322
Chupacabra-322's picture

By the way, it doesn't matter what Corporate Controlled Government News Agency you watch tomorrow to get the election results.  They all get the results from NEP.   They'll all be feeding the sheeple the identical PsyOp of "we just got in these results."  Remember it's paid actors providing a script "Program" for viewer consumption.  Stealing elections since 2000.  Now it's a perfected art.   

The National Election Pool (NEP) is a consortium of American news organizations formed in 2003 to provide "information on Election Night about the vote count, election analysis and election projections." See NEP's FAQ. Member companies consist of ABC News, the Associated Press, CBS News, CNN, Fox News and NBC News. The organization relies on the Associated Press to perform vote tabulations and contracted with Edison Media Research and Mitofsky International to "make projections and provide exit poll analysis."

The precursor was Voter News Service, which was disbanded in 2003, after controversies over the 2000 and 2002 election results. The NEP plan is largely the suggestion of CNN, which used Edison/Mitofsky as consultants in the past. Mitofsky headed the original pool that preceded VNS.

The organizers of the pool insist that the purpose of their quick collection of exit poll data is not to determine if an election is flawed, but rather to project winners of races. Despite past problems, they note that none of their members has incorrectly called a winner since the current system was put in place. [1] However, to avoid the premature leaking of data, collection is now done in a "Quarantine Room" at an undisclosed location in New York. All participants are stripped of outside communications devices until it's time for information to be released officially.

https://en.wikipedia.org/wiki/National_Election_Pool

Mon, 11/05/2012 - 17:22 | 2949826 NotApplicable
NotApplicable's picture

Funny thing about VNS was that it ACCURATELY exposed all of the scams, so they blamed it for the on again, off again "Winner!" announcements, then threw it under the bus and came up with a more controllable scam.

Mon, 11/05/2012 - 16:59 | 2949749 Schmuck Raker
Schmuck Raker's picture

I hear Barney Frank has an open position for a page.

Do NOT follow this link or you will be banned from the site!