Former US Treasury Secretary Timothy Geithner is promoting his book chronicling the financial crisis Stress Test: Reflections on Financial Crises. Great book name, btw.
He sits down with Vox Media’s Ezra Klein to talk about what happened. I highly recommend watching this entire interview. Once you get past Ezra Klein’s sock selection, he touches on all the key points that would help us better understand what went wrong. It reconfirms why I enjoy reading anything Ezra writes.
I also have to say that Geithner has a great engaging conversational style that I enjoyed and helped me gain additional insights. However the problem with the Geithner’s responses – that I can’t seem to get past – is that Geithner was head of the New York Fed, surrounded by Wall Street, during the housing bubble run up. You walk away from this conversation feeling like his actions were the only appropriate responses to the crisis – ie focus only on the banks (and grow moral hazard significantly). Of course it has to be a nightmare to get anything done in Washington. However, I also got that same feeling when I read Andrew Ross Sorkin’s well written “access journalism” book, “Too Big To Fail” – that saving the banks was all that mattered to him.
It doesn’t help that I read previously Neil Barofsky’s terrific book “Bailout” which provides a lot of insights into how the sausage was made – identifying the US Treasury’s exclusive focus on the banking system when there were opportunities to help main street at the same time. Apparently Geithner takes Barofsky to task in the book, probably because Barofsky did the same.
I’m not sure if I’m going to pick up a copy.