Card for Treasury??
David Gilmore at foreign exchange analytics is predicting that Andy Card will be the new Treasury Sec.
there is an important signal in the selection of a politico like Card to head Treasury (throw Phil Gramm in this camp too, though he is an Econ Ph.D.). First it is another stiff arm to Wall Street and financial markets in that Bush is not tapping a Rubinesque candidate. It says the political agenda of Social Security and tax reform is far more important than what financial markets think and more importantly do. One would think that there are significant risks to US asset markets ahead with record deficits and evidence that foreign investors are putting less new capital to work in the US. Essentially the decision says a dollar crisis is not even worth considering. If it felt it was a greater risk, than the selection would have been from Wall Street, like a John Mack.