Don’t worry about the Geithner nomination getting thrown into disarray. Bettors on Intrade asign a 94% chance of him getting the post, despite the various mini-scandals surrounding him. It had been trading close to 100%, so obviously the news has done some damage
There’s no realistic chance that Geithner will fail to become Treasury secretary as a result of this scandalette, if only because there’s zero chance that Republicans would be any happier with Obama’s second choice. Geithner is clearly qualified, and has worked very well with Republicans in the past: not only Bernanke and Paulson, in his present job, but also Anne Krueger, at the IMF. Had Mitt Romney, say, been elected president, Geithner would probably have been on his shortlist for Treasury secretary too.
Instead, the tax affair will act as a baptism of fire for Geithner, toughening him up for the nastiness which lies ahead. Just as Obama ultimately benefitted from the drag-out fight with Hillary Clinton in the Democratic primaries, getting through a little bit of adversity before he gets the job might well do good things for Geithner too.
(HT: Tyler Cowen)
Politico Piles On Geithner
Business Insider Emails & Alerts
Site highlights each day to your inbox.