MIPOTW: Index Cards, Choices & TARP

This installment of the Most Interesting Phrase of the Week is actually a collection of phrases I heard in an interview with Neel Kashkari on PBS’ Charlie Rose from May 7. (I suppose the “W” in MIPOTW is a little fluid. 7 days are just so constraining!)

Neel Kashkari is the out-going administrator of the TARP financial bailout funds. It was interesting to note that he was asked by the current administration to stay on at his post through the transition. He ended up staying past the ever-watched first 100 days. That, in and of itself, is a testament to the skill of this man and the respect he’s garnered in the face of much criticism.

On to the phrases…
“When the consequences of inaction are so great compared to the cost of intervention–even though it’s something we don’t like to do–the choice is easy to make.”

It was spoken in response to a discussion on the question of funneling tax payer money at financial institutions with a track-record of poor decisions. But, it strikes me that this type of tough call is found in almost every area of public and private life.  Although we long for the black and white, the choices we make most often fall in shades of gray.

“The louder he yells, the calmer I should be.”

Mr. Kashkari said that he wrote this on an index card he kept in front of him during the length of the congressional hearings following the AIG bonus fiasco. His comment about his role: “I am now the face of this.” Now, there’s an example of personal responsibility.

“These are going to be the rules at the beginning. These are going to be the same rules at the end. Government needs to do what it says it’s going to do.”

This statement came in response to a discussion about ways to get financial and other institutions to buy into the bail-out plan and its terms.

General observations:
1. There’s a reason I’m not an economist–macro, micro or otherwise.
2. Neel Kashkari is an impressive guy. My tax dollars were in good hands on his watch.
3. Charlie Rose has an incredible ability to hear it, understand it, and boil it down–whatever it is.