Is President Barack Obama's administration showing hints it is losing confidence in Treasury Secretary Timothy Geithner? CNBC's Larry Kudlow said the signs are suggesting as much.
The host of "The Kudlow Report" said in an appearance with CNBC On-Air Editor Charlie Gasparino on his March 17 broadcast that a statement put out earlier today by the administration, and placed at the top of the Drudge Report, hinted this was the beginning of the end for Geithner.
"You know, statements out of the blue - statements like this are what I call a real bad leading indicator that Geithner's time, days may be numbered," Kudlow said. "It may not happen in the next week, but it may happen."
The statement was made in relation to the Treasury Department's handling of the brouhaha surrounding the $165 million in bonuses paid out to American International Group (AIG) executives, even though they were recipients of bailout money from the Troubled Asset Relief Program (TARP).
ABC's Jake Tapper reported today that Geithner found out on March 10 about the AIG bonuses. Tapper also reported Geithner phoned AIG CEO Edward Liddy the evening of March 11 to protest the bonuses, but it wasn't until March 12 that he informed "a senior White House official about the controversy." And then it wasn't until the next day, March 13 that aides passed the information on to the President.
Gasparino compared the "complete confidence" Kudlow had referred to earlier to the statements put out by the administration to the defenses made for the former CEO of Citigroup before his resignation in November 2007.
"You know, as the losses mounted, you know, everything's OK, then you start seeing all these write-downs. You know, the company comes out and the people like Bob Rubin come out, and [say], ‘We have full confidence in Chuck Prince,' and that's what happened right after that," Gasparino said.
According to Kudlow, who served in the Reagan administration as the associate director for economics and planning for the Office of Management and Budget, the same holds true for politics.
"The same in politics, Charlie," Kudlow said. "My experience is when somebody says we have full confidence in so-and-so, get ready - the ax is going to fall."
Geithner faced another controversy during his confirmation after it was reveal he failed to pay payroll taxes on income he received from the International Monetary Fund (IMF) in 2001-2004.
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Uh, isn't this the same guy
March 17, 2009 - 20:38 ET by RR GOPUh, isn't this the same guy who the Libtards/Democrats certainly were touting as the genius (just below The One, of course) that was going to 'fix' the economy?
If this stuff even makes the MSM, then there must be something to it. How long is this bus anyway?
BTW, where on earth is Neel Kashkari? Don't hear anything about him anymore...is he still the interim head of the Office of Financial Stability? If not, if and when is someone new/permanent going to be appointed? Is this even considered to be an important organization in the current administration?
One of the 34% who thinks George W. Bush was a great President. One of the 61% who wants to bring back the stock and pillory (yep...approval for Congress now at 39%...do you believe that!?).
Yep
March 17, 2009 - 20:43 ET by 10ksnookerThe only guy that was capable of fixing the economy ... So what will we possibly do without him.
Hey RR... Great
March 17, 2009 - 20:43 ET by bigtimerHey RR...
Great observation...where has Kashnkari been hiding?
The Shadow knows....
He's still around...
March 18, 2009 - 08:50 ET by Prester John....trying to educate Congress.
Kashkari: Banks Cannot Be Forced to Loan
The man steering the government’s $700 billion bank rescue effort on Wednesday (3/11) warned against politicians and bureaucrats inserting themselves into the day-to-day operations of banks that receive bailout funds.
“However well-intended, government officials are not positioned to make better commercial decisions than lenders in our communities,” said Neel Kashkari, interim assistant secretary for financial stability at Treasury.
Kashkari, speaking before a Congressional subcommittee, said banks should not be forced to make loans because the result could be a return to the risky lending practices that has led to record numbers of defaults on all types of consumer loans.
http://www.foxbusiness.com/story/markets/economy/kashkari-banks-forced-loan/
Another One Under the Bus ...
March 17, 2009 - 20:58 ET by slickwillie2001If Geithner appears with the Bamster and he says 'you're doing a heck of a job Timmy', that might be a bad sign.
PS Derbyshire at NRO suggested today that Geithner hold a job fair at the White House to try and fill some of the openings in Treasury.
PPS Shanklin needs to do a song, 'Another One Under the Bus' to the tune of 'Another One Bites the Dust'.
How about this one.
March 17, 2009 - 21:50 ET by jdlybrandBuddy you're a blind dude
Gettin' screwed
Listen to us
Givin' you
All the news we see fit
You got mud on your face
You big disgrace
Don't worry we'll put you
Back into your place.
Singin'
We will we will B'rack you!
Evry'body
We will we will B'rack you!
President TelePrompter's
March 17, 2009 - 21:30 ET by TN MomPresident TelePrompter's administration is coming apart at the seams and it's only day 56!
Too big to fail?
March 17, 2009 - 21:48 ET by BarkerWell, in this case, the bigger they are, the harder they fail.
It may be time for Teleprompter Inc to cut the puppet from the string and hang another.
Didn't Obama say (on and off teleprompter) that Warren Buffet would make a great Treasury Secretary?
Another sacrificial lamb
March 17, 2009 - 21:50 ET by suburbanitePresident Obama is going to throw Geithner under the bus like so many other useful idiots who have served Obama. Geithner is providing a sufficient distraction and delay of a "plan" to fix the economy - address the problem of the bad assets in the banking industry. The delay of the "plan" is necessary because Obama needs to get his budget passed before the public sees the staggering cost of the "plan". If the "plan" is instituted first, there is no way Obama can do a cram-down, like he did for Stimulus I, of his budget. If the budget gets passed first, Obama can do his cram-down of the "plan" because the economy absolutely, 100% needs it.
"Fight the good fight every moment
It's your only way" Triumph
Biden Should Go Along With Geithner
March 17, 2009 - 21:56 ET by Gat New YorkWe have the Obama Administration beginning to lie on a regular basis.
How is that possible when last Fall, as the Chairman of The Federal Reserve, Geithner was responsible for giving AIG a high interest loan in the first place and later help craft the TARP program that included rules about executive compensation but nothing about retention bonuses.
And can Joe Biden get any dumber? Biden when interviewed said:
He expects us to believe that 20% unemployment is better than 6.5% unemployment. He expects us to believe that our trade, currency value, and stock market are worse off now than they were when FDR entered office.
Biden then goes on to make it worse:
The problem FDR came into office with was “clear?” Has Biden ever read any books on the Great Depression and The New Deal because if he had he would quickly learn that no one – but no one – in government had any idea how to deal with what they had or what direction the economy would take including never recovering.
Once again Jeff Poor and NB
March 17, 2009 - 22:16 ET by jdhawkOnce again Jeff Poor and NB you are concentrating on the personalities and letting game changing policy foment unopposed. What I am talking about is this administration end run around any input by our conservative elected officials regarding socialized medicine and the implementation of a cap and trade system embedded in the upcoming budget.
Should these items become separate from the overall budget they can be debated both in committee and on the floor of the House and Senate. They can be tied up in procedural votes in the Senate. And, finally, they can be filibustered on the floor of the Senate. If they are a part of the overall budget, none of this will happena and these crap proposals will sail right through and become law.
Americans do not want European style health care, a ridiculous, harmful and unneeded energy policy, and the outrageous lie that this gargantuan budget will not raise all American's taxes, lower our standard of living, and prolong the present recesssion.
I could care less whether some dufus bureaocrat remains in office or not. What we need is ample fodder to depose this abject socialist recklessness and depose this administration at the ballot box in the upcoming election of 2010.
Re: ", , , We’ve
March 17, 2009 - 23:41 ET by snaggletoothieRe: ", , , We’ve never ever been here before – here or in the world. Never ever been here before." from Biden. Where are we Joe? Do you or your boss have a clue?
The next time I go to the bank....
March 17, 2009 - 23:54 ET by superconI need to make sure I get a $100 bill with his signature on it.It may become valuable.
I'm not sure how long I will be able to hold on to it without spending it but at least I will see it.It will be like a double struck penny or that stamp where the plane is flying upside down.
Because with a name like Obama... you know it has to be good.
Geithner CDS
March 18, 2009 - 08:25 ET by slickwillie2001I'm going to issue Credit Default Swaps based on the possibility that Geithner will fail and get his butt fired. If he's not fired, I'll make money; if he is fired, I'll get a bailout. Surewinner.