The Patsy

About three-fourths through The Maltese Falcon, Humphrey Bogart's Sam Spade and Sydney Greenstreet's Kasper Gutman decide to join forces although each man was from different sides of the law. In fact, Spade suggests that Gutman's accomplice, Elisha Cook's Wilmer Cook take the rap on murdering Spade's partner to seal the deal -- to be the patsy. Gutman relents much to the displeasure of Cook. (Check the movie out to see how it ends.)

Such is the case with the U.S. Treasury. President Obama and Larry Summers, his director of the National Economic Council, are calling the shots on revitalizing (or destroying) the economy. Timmy Geithner is the patsy. They figured he probably had enough smarts and experience to get confirmed but enough weaknesses (to include an issue about not paying his taxes) to make him ineffective. (I don't know if Geithner saw it coming.)

So while O & S pump up big government with ever bigger steroids, er, spending, it's Geithner who is being set up for failure. He's the public face of the Administration on the economy and he's the one that has to play "stump the chump" with Congress, the media, and our allies. Obama isn't resigning and Summers isn't going anywhere -- so when a head has to roll -- it will be Geithner's.

Summers, who was a Treasury Secretary, doesn't want nor need too much attention in his current office. (I think his dull demeanor is an act when he hits the Sunday morning news programs.) As the economy continues to plunge south and as even more red ink will be spilled, it will be Geithner, not Summers, who will be called on to pay.

However, Timmy isn't going anywhere. As seen by the Administration's failure to fill the dozen and a half spots that require Senate ratification, it won't be easy getting another patsy. If Geithner couldn't bring himself to step down after it was made known that he studiously avoided paying taxes, it's not likely that he will resign willingly. He will have to be fired. So yesterday's screw up -- about being "open" to a worldwide currency other than the dollar -- will have little impact on Geithner's job security.

It didn't end well for Wilmer Cook in the movie. I'm sure it will be just as bad for Timmy (sans the bloodshed, of course).

Timmy's Travails

Six weeks into the administration -- and Timmy Geithner is still flying solo at the Treasury Department. The Department has 17 positions that require Senate confirmation. So far, no names have been ponied up.

Apparently, it's not for a want of trying. According to the AP, a prospective deputy decided to take a pass when offered the job.

However, the bright spot (everything is relative these days) is the fact that he has a 50-member advisory board.

When you have 50 guys and gals giving you advice -- you're not getting smarter -- you're getting confused. (I'd be curious to know how many of them are erstwhile lobbyists.)

One blogger is perplexed.

He needn't be.

The key to understanding is that this administration, with respect to domestic affairs, prefers to to micro-manage. (Hillary got her secretaryship to take her out of the 2012 race and even Team Obama knew their limitations when it came to defense.)

Geithner, eager to have his signature on the currency and willing to embarass himself about his tax-dodging, took the job. It seems that subordinate position holders aren't willing to accept a title without commensurate authority.

Proximity is power. Larry Summers is decamped somewhere in the White House. He has the President's ear. He develops the policies -- for better or worse -- and the folks over at Treasury are expected to carry it out. Who -- with 15-20 years experience in financial matters -- wants to do the job a glorified college intern? After six weeks the answer is clear -- nobody.

Treasury will not be the only department to have this problem. The czars and czarinas at 1600 Pennsylvania Avenue will be the power brokers. They won't be simply "coordinating." They will be barking out orders that begin with, "The President wants..."

If that's not a recipe for disaster, then it should be in the cookbook.

Expect a rounding up of the usual suspects -- mostly hacks -- to fill in the Treasury Department. Based on the recent performance of the stock market, it's not as if the economy was an administration priority anyway.