Geithner: There Will Be No 'Second Wave' Crisis

Discussion in 'Economics' started by S2007S, Dec 23, 2009.

  1. S2007S


    This guy is good, I bet 2 years ago they would have said no crisis at all, everything is under control, sub prime is contained and jobs are plentiful and then to everyone's surprise the bottom fell out. I cant believe he is that confident to shout that there will be no second wave crisis, but on the other hand I guess when you can print trillions of dollars and raise the debt ceiling numerous times anything is possible.

    Geithner: There Will Be No 'Second Wave' Crisis
    The Associated Press | December 23, 2009 | 05:51 AM EST

    Treasury Secretary Timothy Geithner said Tuesday the Obama administration is confident it will prevent a repeat of last year's financial crisis, the worst to hit the country in seven decades.

    "We are not going to have a second wave of financial crisis," Geithner said in an interview with National Public Radio. "We cannot afford to let the country live again with a risk that we are going to have another series of events like we had last year. That is not something that is acceptable."

    Geithner, interviewed on NPR's "All Things Considered" program, rejected the idea that a serious new crisis could be triggered by lingering problems with commercial real estate loans or with a sudden weakening in the value of the dollar.

    "We will do what is necessary to prevent that and that is completely within our capacity to prevent," he said.

    However, in a separate interview he conceded that it would take several months before the economy yields positive job growth. Job losses have been easing in recent weeks but the economy still saw 480,000 new claims for unemployment benefits last week. That number is expected to shrink just a bit this week.

    "Most economists would say that, by the spring, we'll have positive job growth," Geithner said in an interview on ABC's "Good Morning America," conceding that it is unlikely there was any job growth in December.

    Geithner spoke on a day when President Barack Obama met with executives from a number of community banks, reiterating his plea for banks to do more to lend to small businesses. Obama took a more conciliatory tone with the leaders of the smaller community banks than he had in a meeting last week with leaders of the country's largest banks.

    Geithner, referring to the actions of the large banks in last year's crisis, said he did not believe they yet understood that they had lost the "confidence and trust of the American people." He said bankers had a "long way to go" to restore that confidence.

    Geithner defended his numerous contacts with executives from the largest banks, contacts that were revealed in telephone calendars obtained in October by The Associated Press under the Freedom of Information Act.

    Geithner said that he also spent a considerable amount of time talking to owners of small businesses and to small banks as well. He called it a "misperception" that he was devoting too much time conferring with the largest banks. He said the conversations he had right after taking office should be viewed in the context of the serious crisis facing the financial system last winter and spring.

    "I'm the secretary of the Treasury. I have to spend time figuring out what it's going to take to fix the things that are broken in the financial system," he said.

    Asked about the economy, Geithner said there were a number of signs that economic conditions were beginning to improve in terms of consumer and business confidence rising. He said it was likely that overall economic growth in the current quarter is accelerating, but he cautioned that dealing with the economy's troubles would take time.

    "We were in a very deep hole and it is going to take a long time to repair the damage done to confidence," he said.
  2. ammo


    geitner is part of the gsax ra ra team, they are unloading longs and reload ing with shorts up here, step in ,give it a whirl, 3 tries for a quarter, win a teddy bear for your girl
  3. lol. one of the most disappointing things about the obama administration is the fact that not one new regulation has been passed to eliminate the very business practice that blew up the markets last year. for wall street its business as usual.
  4. Mvic


    "We will do what is necessary to prevent that and that is completely within our capacity to prevent," he said.

    Sends shivers down my spine.
  5. sosueme


    I agree with Tim.
    Given that he didn't admit to seeing the first crisis, he will certainly not admit to seeing part 2.

    However this statement of his is not what it might appear, in that there will be no second wave financial crisis.

    The bomb(s) heading for US in 20210 will be given other titles and collectively will be the beginning of the end for american society as people once thought that they knew it.
  6. ammo


    obama, bush, goldman sachs, or just the administration
  7. +1
  8. his rah rah is just to make sure Wall Street buddies get their bonus.

    Where's that plane to China located again.
  9. S2007S


    HERE YOU GO, Henry Paulson in 2007 said that sub prime was contained, well as you can see what Geithner is saying today, how the FUCK can you believe any of these fools.....

    Lies, Lies and more Lies, how anyone can believe the economy is turning around and growing, that everything is well on its way to recovery is just fooling themselves. This is a very sad situation.

    Treasury's Paulson- subprime woes likely contained
    Fri Apr 20, 2007 5:59pm BST

    NEW YORK, April 20 (Reuters) - U.S. Treasury Secretary Henry Paulson said on Friday the housing market correction appears to be at or near its bottom and that troubles in the subprime mortgage market will not likely spread throughout the economy.

    "We've clearly had a big correction in the housing market. Retail housing was growing for some time at a level that was not sustainable," Paulson said in a speech to The Committee of 100, a business group in New York promoting better Chinese relations.

    "I don't see (subprime mortgage market troubles) imposing a serious problem. I think it's going to be largely contained," he added.
  10. pspr


    His statement is odd considering the Administration and Congress are doing everything they can to make sure it DOES happen again.

    Maybe Geitner thinks he has a couple more trillion dollars to spend. I have little faith in this guy's intelligence or abilities.
    #10     Dec 23, 2009