Friday, December 06, 2002
HEADS ROLL: Paul O'Neill resigns from Treasury. No big surprise there, since it's been rumored for weeks, he was never considered an insider and was always a bit of an odd choice, distinguishing himself primarily for highlighting the inane complexity of the tax code. The resignation of Larry Lindsey, however, is more of a head-scratcher, since he has been a confidant of Bush for awhile and is a sound guy. Maybe he's embarrassed for having to defend the steel tariffs and the farm bill -- which, IMHO, might be contributing to the lack of confidence by consumers and investors in the economy. Both of these moves -- and the rejection of the EchoStar/DirecTV satellite merger -- make zero economic sense but have scored political points for the White House. I'm guessing we'll know about the back story of the Lindsey decision soon.