Obama shifts power away from Geithner
Senior administration officials say there is now broad consensus within the White House and the Treasury for the plan advanced by Volcker, who leads an outside economic advisory group for the president. At its heart, Volcker’s plan restricts banks from making speculative investments that do not benefit their customers. He has argued that such speculative activity played a key role in the financial crisis. [Source]
Obviously this is good news, but what I find irritating about it is that the government only starts listening to its voters once the more corrupt option turns out to be untenable. They are making these moves out of necessity now, and that’s great — but it’s too bad they had to drive us right to the edge of the cliff before they thought about backing up.
There are rumors all over the place that Treasury Secretary Tim Geithner is about gone, and I’ve even heard some gossip indicating that Rahm Emanuel might have to start watching his back. Hey, whatever works. Obama, as is his nature I think, tried to take the fork in the road all year, making nice to his base while actually delivering to his money people, not realizing the two were perpetually in conflict. His failure to make a clear choice, or rather to make the right choice, is what has doomed him everywhere politically.
It will be interesting to see what comes next, whether this is just for show or not.