Your Even A Stopped Clock Can Be Right Alert Of The Day

Yeah I know, John Carney is just Jim Cramer without the ridiculous sound effects and better hair, but on the subject of Tim Geithner needing to find out what America's unemployment situation is like by being unemployed, he's right.

There will be heavy pressure from within the Democratic party for the Obama administration to make changes that will both publicly mark a change of direction for the administration and privately send a message to party insiders that the White House is accepting its share of the blame for the loss of the House of Representatives.

Geithner is a clear candidate to play the fall-guy. In exit polls, six in 10 voters said the economy is the nation's No.1 problem. Around four in 10 believe their family's financial condition got worse since Obama took office. Geithner is the nation's chief economic official. A large share of the blame for last night's results will likely fall on him. 

Geithner outlasted many other economic advisers to the president, including Peter Orzsag, Herb Allison, Steve Rattner, Larry Summers and Christina Romer. Insiders say the role he played in getting Congress to pass the financial reform bill has significantly strengthened his position in the administration. 

But Geithner lacks a constituency within the Democratic party, especially on Capitol Hill. He won't have substantial backers who could protect his job, unlike many other high level Obama administration officials. He doesn't have any ties to the Democratic base. He hasn't been a substantial fund-raising draw for any Democrats. 

Geithner's best hope for keeping his job may have been for the GOP to take the Senate. In that case, the administration may have feared Republicans would block the nomination of his successor. But with the Democrats still controlling the nominee confirmation process, the administration will have a more leeway to pick a replacement. 

Four words.  Treasury Secretary Paul Volcker.  He's done it before.  Reagan's "Morning in America" happened because Volcker labored in Carter's darkness before the dawn and made the tough calls.  Carter got rewarded for that by getting steamrolled in 1980, but Volcker did what he had to do to kill stagflation.

This time around, it's going to be a lot tougher, especially with Helicopter Ben flying around crapping out bricks of cash.  Volcker could get confirmed, too...and maybe knowing Treasury was serious about dealing with the banks would go a long way.

Although that's probably exactly why it wouldn't happen, the GOP scorched earth campaign would mean that Reagan himself couldn't get appointed SecTreas.