Obama On Banking Crisis: We Can't "Prolong The Agony"

Barack Obama is taking a rip-off-the-bandaid approach when it comes to dealing with the banking crisis, telling ABC Nightline that the process of restoring financial normalcy will require some hard choices and introspection on Wall Street.

In an interview set to air Tuesday night with Terry Moran, the president asked to comment on Wall Street's sour response to the bank relief proposal laid out by Treasury Secretary Timothy Geithner.

TERRY MORAN:So, Treasury Secretary Geithner today has laid out the plan for the banks, and judging by the reaction in the markets Wall Street really doesn't like it.

PRESIDENT OBAMA: [LAUGHS] Well, you know, Wall Street I think is hoping for an easy out on this thing and there is no easy out. Essentially what you've got are a set a banks that have not been as transparent as we need to be in terms of what their books look like.

And we're gonna have to hold out the bandaid a little bit and go ahead and just be clear about some of the losses that have been made because until we do that, we're not going to be able to attract private capital into the marketplace. And so, you know, I think that you have two choices in this situation: you can prolong the agony and shareholders will be happy until they're not happy and that could be a year from now or two years from now or in the case of Japan, eight years later.

Or you can just go ahead and acknowledge that yeah, there's, there's a lot of work that has to be done to put these banks back on a firmer footing.

Watch:

The Dow Jones Industrial average fell 380 points on Tuesday following Geithner's speech, which, as the Wall Street Journal notes, was interpreted by traders as too little too late. The proposal calls for up to or more than $1 trillion in public and private support to help prop up struggling banks and restore functionality to credit markets. The markets, of course, are only one indicator of how the economy is responding to the administration's approach. The Dow Jones could be up tomorrow depending on how banks begin to digest Geithner's plan.

Comments

[CitizenFarmer]

Odds are that Tim will be gone in three to six months. Rahm is crafting a situation where Tim will be the fall-guy for a failed first-cut of the Obama plan. Then someone without tax issues and who is not tarnished by leading an institution that has responsibility for auditing the banks that have failed, will take over. Look for it to be a somewhat pure academic type that may have no public company experience.

[djmarch]

The market was looking for direction yesterday from the fed, and didn't get it...Plain and simple..Geithner had his chance and bombed...

[SpendBabySpend]

Obama needs to sit down with his people before they go on TV..Geithner made Obama look foolish, or at worst clueless.Obama promised the nite before on national TV Geithner was going to announce "a clear and specific plan". All Giethner had were ideas. Bad, Bad, Bad, Geithner lost credibility, and that reflects on Obama.

[GiveUsFree]

These folks have been handed one fine very complicated mess. It's easy to sit here and judge and forget that it's only been 3 weeks. President Obama can't do everything. He has to trust that his folks will get it done. Geithner is not a politician and is accustomed to staying in the background. I think he will learn and get better at effectively communicating his plan with an acceptable level of detail.

[rubinoff]

((( yawn ))) ...how does that reflect on the prez?....the guy was obviously nervous...he's good at what he does, some people are Not the best at explaining things, but can do the job. What's more important? We have been spoiled because we love to hear the prez communicate, he's a tough act to follow.

[JungleRoses]

These banks "Wall Street" unfortunately set the stage of mistrust in America. Greed has shown its ugly head...... Now the global economy doesn't trust American businesses and American businesses don't know who they can trust? So we all have to return to the basic code of ethics to survive. What a price to pay.....

[MANK]

S











SULLy UP! Wall Street should take a lesson from a REAL American. His pay and benefits were cut due to the economy and look what he and his crew did.

[PlayTOE]

Obama realizes that he has to be tough on the banks. However, he seems to think Treasury Secretary Geithner actually was tough, when this guy did a work around on all the rules and looks to have an 'open pantry' party where the banks can be restocked with money and then have all their (public) assets transferred to private people.

Obama may need to replace Treasury Secretary Geithner with someone who will actually be tough.

[ThatOne4Me]

Geither + Bernake = Disaster

[Helzapoppin]

dont forget to add Summers

[FreedomAgain]

The news keeps saying, "stocks dropped today because wall street may be held accountable". There are wealthy people and corporations that are deliberately manipulating the stock market right now, in order to get more free money. The average individual investor at home isn't saying "Hey, if they won't give free money to wealthy bankers, I'm not going to buy stock". We need to quit looking at stock numbers, and quit giving away money with no strings attached. We need to make the banks work for their money again.

[SpendBabySpend]

Actually, the news reports and Wall Street are saying the reason the market dropped is because they were promised a "clear and specific plan" bu Obama himself the nite before..look at the clip. Geithner gave..a vague outline. These two need to talk to eachother..Geithner made Obama look foolish. Wall Street would of boomed, regardless of what was in a plan, but the lack of a plan made them worry that he doesn't know what he's doing. Ideas is not a plan.

They are laughing at Geithner and wondering whether he can regain credibility.

[ssgman]

Gimme a break. Like the press is going to go through the details of a specific plan. LOL! FreedomAgain is spot on. The babies on wall st want even more money with no strings attached. Even slightest whiff of regulation throws them into a tizzy fit.

[melissamsouza]

Actually, if you understand the broad strokes of the Geithner plan, it is a very easy way out. Not only do all these creeps get to keep their jobs, but we are going to have to pump trillions of our dear money into prepping them up at all costs. Instead of letting them simply fail, or at least GETTING OUT OF THE PICTURE by stepping aside (that is, FIRE THEM FOR GOD'S SAKE!), Geither, their agent, is going to do everything in his power to keep them in business. Even if it is at the expense of the country; even if it is at the expense of Capitalism itself--for no system can survive being led by characters such as these--greedy, rapacious, alienated, selfish, amoral bastards!!!

[zaz33]

The crooks that stole the money will get the reward from the ones that gave them the keys to the safe.

They're ALL insiders.

Follow the money.

[Jazzcomedian]

"Wall Street is hoping for an easy out, and there is no easy out"

.....President Obama


Seems like Wall Street can't handle the truth judging by their response. That's obviously not what they want to hear. It says that they're no longer calling the tune on how much pain they're going to have to endure, for the mess they've put the country in. The market is not something that the whole nation should fear like some wild dominating monster. That's far too much control over us, and our collective economic security. Capitalism should enhance, and not supercede the financial security of the nation.

For far too long Wall Street has been operating on the premise that all it has to do to intimidate the governent, and the country into doing what they want, is have a large down day. They've betrayed the nation, and they must face their day of reckoning just like the rest of us. I'm glad President Obama is letting them know there's no easy out for them.

[marthlois]

LOVE YOU O.....but someone has to step up for Mainstreet first.
I simply cannot believe that you guys are saying "and in a few weeks, we'll put out a plan
to deal with the specifics about foreclosures, opportunites for refinancing, etc".
Are you kidding me? Do you know what a FEW WEEKS is to most people right about
now? Surely you can do something to squelch the meltdowns in Main Street as well as
Wall Street. I've supported you for a very long time. But I'm disappointed tonight.

[PhilipTaylor]

Well Wall Street thought the 1,000 Trucks loaded with new money would show up today!

Too Bad Bad Boys!
_________________________________

Quarantine and BYPASS the Eight Corrupt Wall Street Banks that are TENS of TRILLIONS over their heads in TOXIC Paper Debt.

1. A Government Bank could be the TOOL to open up the Money Flows at low rates and fees with simple contracts.

2. Obama could issue Government Notes required to pay taxes into the economy, as has been done in past history, to gradually remove ourselves from the International Banking System that guided the Big Banks and America so deeply into this Debt Crisis.

3. Simply fund the Community Banks to make new loans to Community people!

[Episcopagan]

Co rupt
you know me.Posted 12:34 AM on 02/11/2009

ARahman
Dean Costanza?
Posted 12:36 AM on 02/11/2009

Co rupt
did you have to use my full name? ha
Posted 12:37 AM on 02/11/2009

Dean COSTANZA, 36 years, Hamilton
Conspiracy To Traffic in Co caine, Sec. 465 (1) (c) of the Criminal Code.
Possession Of Proceeds Of Crime, Sec. 355 (a) of the Criminal Code.
http://www.hamiltonpolice.on.ca/HPS/News/goldmineupdate.htm

[Xavieer]

Well well a glorious reunion........All by myself as usual guys shall we converse, or is it your wish to ban me into oblivion??? No Mod mentality here......Just a lone trollslinger and I place the emphasis on "lone"......however sane people are a welcome sight....786 I left that question out there for you...So how will ya deal with immortality???

[ARahman]

Homie > Wat u talkin about, yo?

[ARahman]

CostaDelBarto See Profile I'm a Fan of CostaDelBarto I'm a fan of this user permalink

You had a sane and honest thought?

Who knows, maybe you'll get lucky and have another one some day.

--------------------------------------

Read who posted it first and then comment.

Open your pants first and then take a pi$$! :P

[Co rupt]

lmao

[ARahman]

Welcome to H u f f p o ...

Co rupt

Member Since February 2009

* Profile
* Comments

Location

Bio
Favorite Bloggers (0)

Fan Base Add a FavoriteBecome a Fan of this Member
Members Co rupt is a Fan of (0)

Members that are a Fan of Co rupt (0)

Stats Board
Comments

* Total Comments Made: 7
* Comments to News: 7
* Comments to Blog: 0

[Rumplestiltskin]

Sorry about the excess bits, my son had digitized an Obama pic, and it didn't turn out. My Bad. Consider it my 100s of posts for 'ere.