Stop Trading! Geithner Is Innocent (1/13/09)

Includes: DIA, QQQ, SPY
by: Miriam Metzinger

Stocks discussed on Jim Cramer’s Stop Trading! TV program, Tuesday January 13.

While Cramer has had some harsh words in the past for Tim Geithner, Obama’s choice of Treasury Secretary, he doesn’t believe the allegations that Geithner hasn’t paid all of his taxes and had an illegal immigrant working in his home, “I am going to give this guy enough credit to say that this could not have happened,” Cramer said, “and that Geithner didn’t do this. It’s just too shocking.” No normal person would risk being in the public eye and embarrassing the President if he had this on this record. However, if the allegations are true and if Geithner has to withdraw his nomination, Cramer thinks Sheila Bair should step in.

CNBC’s John Harwood said the Republicans are making a lot of sound and fury over this and the allegations are a “trivial technical violations”: the housekeeper’s immigration papers expired while she was employed and she later got a green card. Geithner reportedly sorted out his tax irregularities a while back. CNBC’s Steve Leisman said there is a disagreement about how International Monetary Fund officials should be taxed (the problem happened while Geithner was working there) and when Geithner was audited, he paid what he owed.

“We’ve seen egregious examples of this,” Liesman said. “This is not shaping up as if it’s one right now.”

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