Trader Mark’s thoughts on yesterday’s last hour rally and Obama’s selection of Tim Geithner as his nominee for Treasury Secretary.
Rally on Tim Geithner?
Courtesy of Trader Mark, at Fund my Mutual Fund
This appears to have done the trick – it’s silly to rally that much on an announcement since the policies of Obama have been laid out firmly – and if the executioner was Geithner or Summers or Corzine or whomever – it’s a moot point. But this is a casino, not a stock market. I had Geithner as my pick for the next Federal Reserve President so I guess that is one prediction that will not be coming true. This guy is a politico through and through – I’d really of liked to seen someone who ran a business get this type of job – you know "real world" experiences aside from helping New York banks milk the US system. Anyone associated with any branch of the current Federal Reserve and their total lack of oversight should not have a chance but – oh well, that’s politics.
Should make for an easy transition from Paulson since he basically is at the epicenter of the big mess – so let’s see what they come up with together Sunday night to take Citigroup (aka AIG 2.0) off the table.
- President-elect Barack Obama plans to announce his economic team on Monday as part of an effort to reassure markets and will name New York Fed President Tim Geithner his nominee for Treasury Secretary, NBC News has learned.
- Geithner was a U.S. Treasury Department official under both Bob Rubin and Larry Summers and has been with the Treasury since 1988. Geithner’s nomination is anticipated barring last-minute changes, NBC reported.
- Geithner has helped current Treasury Secretary Hank Paulson and his team manage the ongoing Wall Street bailout. (I’d say)
- "I would say the market is going to like it," said James Awad, managing director of Zephyr Capital. "[Former Clinton Treasury Secretary Larry] Summers was more controversial. People will view it as a safe choice, an experienced guy. "There’s a little bit of a question because he’s associated with the bailout," Awad added, "and that’s still a work in progress and not totally successful. There will be a few who’ll be upset because he’s associated with the TARP."
- He joined the Treasury in 1988 and worked in three administrations, serving as Secretary of the Treasury for International Affairs from 1999 to 2001 under Rubin and Summers.
