Explaining Southern California's economy

Tim Geithner v. Democracy

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Treasury Secretary Tim Geithner at the Detroit Economic Club April 28, 2011 in Detroit, Michigan.

Today will be a day of quick hits. Call it an experiment in expanding on the "Reportings" news and opinion roundup I used to do every morning.

First up, Simon Johnson's not-so-subtle assault on Treasury Secretary Timothy Geithner, at the New York Times Economix blog. Background: In Ron Suskind's recent book about the early days of the Obama administration's response to the financial crisis, "Confidence Men," Geithner is cast as the official who wanted to prevent the breakup of the big banks, advocating for stability in the crisis.

Here's Johnson:

Despite a lack of any supporting evidence, Mr. Geithner sees megabanks as essential to the functioning of the economy — and he gambled on bailing them out as a way to restart the economy.

So it would have been entirely logical for him to fear disclosures that would damage their business models and legal viability.

Whenever someone or a group of people is above the law, equality before the law is ended. This is how the megabanks, and the way they are treated, threaten to undermine democracy.

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