The Geithner Plan Made Simple: Congress, Do Your Job!

[Post Summary]

Like an apple tree, so is my beloved among the sons.
—Song of Solomon

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Today I watched the entirety of yesterday's Senate Banking Committee hearings with Treasury Secretary Timothy Geithner and came away with a better sense of why President Obama chose Geithner to head Treasury. Secretary Geithner possesses the same quality of competence and leadership combined with willingness to be a team player as does the President.

Naturally, my public view of our nation's financial crisis is different than that of the President, the Treasury Secretary, and the Congress (generally speaking). Truth is, though, I have the luxury of being outspoken. I am just blogging, not trying to lead a national institution.

Still, my view is shared here and there throughout Congress. And on this point I think Senator Corker hit the nail right on the head. The reason why Secretary Geithner announced only a framework for applying TARP funds (rather than a detailed proposal) is because debate over how to move forward is, in fact, ongoing.

And here the Treasury Secretary's presentation was most impressive. On all counts his view was spoken with perfect consistency. There was no confusing his general thinking, except, possibly, in one subtle manner (and this likely was intentional)...

If you pay attention you see the administration left the door wide open for Congress to act on certain priority objectives. There was none of the "my way or the highway" attitude Henry Paulson turned into the fine art of extortion. Indeed, in answer to certain questions Secretary Geithner in so many words appropriately told Congress, "Do your job."

This he did, however, with a great deal of graciousness and empathy. "Do your job" is my brash summary of what the Treasury Secretary was conveying in answer to questions surrounding municipal finance, consumer protection, bankruptcy law, foreclosure moratorium, and several other relevant matters at the heart of the nation's financial crisis.

Without coming right out and saying it, I do not know how Treasury Secretary Geithner could have been any more clear.

So, on this count Senator Dodd's apparent resistance to investigative hearings, as well as Senator Shelby's worry about whether Secretary Geithner's plan is "Son of Paulson," have absolutely no place whatsoever in the ongoing dialog. There's too much work to be done. Distracting from this only sets up the nation for another bout of chaos and swindle.

Congress: create a parallel banking system focused on financing the build-out of the hydrogen-based economy, and do this in parallel with Treasury's efforts to unfreeze secondary markets in derivative securities. The dynamic interaction of this new facilitator of national wealth just might allow the controlled shrinkage of the securities-based financial system to proceed in a least disruptive fashion. Right now, isn't this the ultimate objective?

Then Congress, take a hint from Secretary Geithner: do your job.

—Tom Chechatka