Treasury Secretary Tim Geithner, who’s said to be isolated and lacking in help, has hired Citigroup’s top economist Lewis Alexander to come advise him on domestic economic matters.
Obviously Citi (C) has had its woes, and Alexander is taking some flack for a quote he made in 2007 on housing: “I think that’s not going to spill over more broadly into the economy, and so I think we’re going to have a normal kind of housing cycle that’s going to last through the middle of this year.”
In his defence, almost everyone agreed with him at the time, and we don’t see the top economist having a major role in the Company’s policy decisions either way. We’re glad to see Geithner get some help. And though Obama’s Treasury department hasn’t taken too much input from Wall Street, we think it could use some, despite the political ramificaitons.