Wall Street's Credibility Problem

Monday saw a very interesting and telling moment as the newest iteration of Treasury Secretary Timothy Geithner's banking recovery was met on Wall Street by a jump in the Dow Jones of almost 500 points, a gain of fully seven percent. The big gains on Wall Street occurred amidst several days of bad press and attacks on the banking recovery plan, the AIG bonuses and Secretary Geithner in general from across the political and media spectrum. Progressive economists such as Paul Krugman attacked the plan as being insufficient and essentially the same as the original Bush/Paulson "cash for trash" plan, while conservative Congressman Eric Cantor (R-VA) referred to Geithner's plan as a "shell game.

Why AIG and Jim Cramer Matter

In the last months, because of the economic crisis a number of stories about the nature of American business have been brought to the attention of many Americans. These anecdotes include not only banks using bailout money for spas, travel and redecorating, CEOs of automobile companies flying on private jets to come to the Washington to ask for bailout money, and the current story of the AIG paying bonuses to top executives while being bailed out by the US government, but also stranger stories such as the ongoing silliness, to be generous, of business journalism and the bizarre television feud between Jim Cramer and Jon Stewart.