Treasury secretary says market won’t solve problem – AP
By PHILIP ELLIOTT, Associated Press Writer Philip ElliottWASHINGTON – Treasury Secretary Timothy Geithner defended his approach to fixing the country’s economic mess Sunday, saying “the market will not solve this” while disclosing a bailout fund for battered banks has $135 billion left and might need more.
Geithner used his first Sunday talk show appearances to promote President Barack Obama’s
massive government spending plan to ease credit, help borrowers and inject billions of dollars into the financial sector…
…”We came through a period where people borrowed too much and we let our financial system take on much too much risk,” Geithner said. “And the consequences of those choices, made over years, were a huge boom. And that boom, the air is now coming out of that and that’s causing enormous damage.”…
…”The market will not solve this. And the great risk for us is we do too little, not that we do too much,” he said…
..Obama’s financial team, however, turned to Geithner in recent days to bolster its case for the economy. The former head of the Federal Reserve Bank in New York, Geithner confidently brushed off Republican criticism that too much spending would send the economy into out-of-control inflation.
“Will never happen. Because we have a strong, independent Fed, with a clear authority from the Congress to keep inflation low at — stable at low levels going forward,” he said…
read full article here…Treasury secretary says market won’t solve problem.
Interesting to NOTE that No Where does he criticize Government as having failed only that Government will save us from ourselves…or at least that is how it is reported which in itself may be a problem. And the Federal Reserve has clear “authority” (this needs to change), joe
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