Geithner Briefs Dems: "We're Doing In Weeks What Countries Did In Years"

At a meeting in the Capitol that stretched late into Monday night, Treasury Secretary Timothy Geithner briefed House Democrats on the ongoing efforts to revitalize the economy.

He pleaded for patience, said numerous Democrats in the room, but also ticked off the administration's accomplishments to date. "We're doing in weeks what countries did in years," he said, according to a Democratic aide in the room.

"This will work," the aide paraphrased Geithner as saying of the overall recovery effort. "It will take some time. It will take some patience. But it will work."

Before the briefing, Energy and Commerce Committee Chairman Henry Waxman (D-Calif.) told the Huffington Post that he thought a second stimulus would be necessary. Emerging from the meeting, he said that Geithner didn't agree and that the secretary thought that the legs of the 'stool' -- the stimulus, the housing rescue, the bank bailouts and tighter financial regulations -- would be enough for an economic recovery to sit on.

Earlier in the day, Christina Romer, head of the White House Council of Economic Advisers, expressed a similar sentiment, saying at a speech at the Brookings Institution that she wanted to see if the first stimulus worked before calling for a second.

The meeting was a general briefing to keep House Democrats apprised of White House plans, not for Geithner to announce any new policy. He did not seek any new bailout funds for the banking system, said Majority Leader Steny Hoyer (D-Md.).

Rep. John Spratt (D-S.C.) said that Geithner told the Democrats that the "budget's wound up with the economy" and that Obama intended to use his spending blueprint as a tool of economic recovery.

Geithner was also asked about the ongoing AIG bailout and how he justified giving the insurer taxpayer money that it then turned around and used to pay off the failed bets of major banks. Several members of Congress said that Geithner argued that the payments were justified, but the members said they weren't able to repeat the arguments he made.

"He was talking about how AIG was a mess," said Waxman, "but they really had no choice."

Comments

[ntmessage]

For those actually interested in turning the economy around Treasury Secretary Timothy Geithner will be a hero. For those looking for more and more money without economic justification, he is unwelcome of course.

[iSeeDumbPeople]

You would sooner fail and drag us down with you than have people not believe in you at all. You're no Rubik's cube.

[KQuarksSuperKollider]

I really really hope it does work for the country's sake. It seems to be helping Citi but it's too early to tell if more drastic action is not necessary.

[freshnotbitter]

Memo to Obama from Fresh:

There is no three legged stool.

The decrease in "private demand" is real and a consequence of a credit bubble.

It must take its natural course with the state dispensing life preservers to the drowning man which does not include CEO's of failed corporations.

If a rational argument is made for a downsized car and financial industry, why then fine.

The lower the housing prices go the better it is for your political future. the stool won't get you elected. Higher prices will get you dis-elected. Check out the record. Summers can marshall the facts. Jimmy Carter, Ford, Nixon, the Weimar Republic, Boris Yeltsin. Do you want me to continue?

But you already have your own idea which probably comes from summers: Public INVESTMENT replaces the lost private demand.

You said "what we invest in becomes very important". Too right.

P.S. - How about asking Republicans for agreement on a tax increase on gasoline where the money is funneled back to states in proportion to their collections for investment in infrastructure in roads and alternative energy? (Pass it over their objection then argue, endlessly, that it is not a tax increase for the following reasons:........... ran out of space, I leave it to your staff as a homework assignment. it's easy.

[indiamerican]

Both Obama and Geithner are being thoughtful and careful. This is why I voted for Obama. Reading all the posts on this article....I have reached the conclusion that most people want everything done yesterday. This impatience needs to go away. Obama is right. We need to help the people in trouble to tide over the bad times and get the economy growing again. The economic indicators will take care of themselves.

[dadw5boys]

THIS IS A CHEAP BAILOUT ~!

The Savings and Loan Bailout cost more !

[joycehelene]

We have to give this man a chance and I agree we need some patience.

[Liberal2]

What Geithner et al. fail to grasp is energy is at the heart of the collapse. Yes, greed did dig the hole even deeper but energy is the real heart of the collapse.

As soon as the economy begins growing, oil imports will grow even faster leading to $4/gallon gasoline and beyond. And the economy will re-collapse.

When prices began rising as gasoline passed $3/gallon, that's when homeowners began to fall behind in mortgage payments...they couldn't afford both gasoline for transportation to work and their mortgage payments once interest rates jumped (to prevent "inflation").

If Geithner wants an economic recovery, he needs to mandate a "free" public transportation system that eliminates the need for a car (not an end of cars) for daily transport and a $5/gallon tax on gasoline. And end cross-country trucking. Sorry, but we can't afford the energy cost of cross-country trucking.

[spaghettidinner]

I liked your comment. I think we have been greedy about our use of energy as well. Our use of energy to me seems like our use of credit cards -- that is ignoring the consequences. Abuse of a resource to the point of penalty for short term gain.

[spaghettidinner]

I might also add, that I'm glad the level of discourse has been raised throughout the country. At least I hear people talking about reality now instead of the sound bites and distraction of the Bush administration who made it their job to do both.

[pjean]

Tim, I have faith in you. Don't listen to the haters. I can;t understand why certain people are so impatient.

[Bulbul]

For crying out loud...give this man a chance, this is to all the Republicans and Democrats. We had eight years of inactivity of the congress, and now this man is trying his best , all they are doing is trying to chase thim man away...

[LuckyLeif]

Geithner is a hero! Citi reports two months of profit! Stock market comes back (for one day). But yikes. Look at this. Taxpayers buttress Saudi prince who got Obama into Harvard? Taxpayers fund terrorism thanks to Citi and AIG participation in Shariah Compliant Finance? Uh-Oh.

http://allanerickson.wordpress.com/2009/03/10/i-didnt-know-i-was-funding-terrorism/

[SailFree]

Pleads "This will work?"

What is THIS? Has he put forth a coherent, explicit, concrete plan yet?

WHAT IS "THIS?"

There's no "this" there!

[jeanno]

If anyone would like a full understanding of what's going on
with the financial crisis
enough to have an actual opinion about it.
This is the best non-partisan explainer out there
***** FIve Star Recommendation - Highly enjoyable
Every American citizen should listen
http://www.pri.org/business/giant-pool-of-money.html

[rpahk]

To take Cit as an example, why not just split it up into distinct businesses: commercial bank (retail), merchant bank (with the so called toxic assets), insurance (the old Travelers) and sell off the parts other than the retail bank?

[4peace]

Wasn't Geitner an advisor to the government of Iceland just before their economy totally collapsed? Just askin'.....

[mjtaylor22]

these institutions were also allowed to prey upon our citizens, from offerign college kids credit cards, to predatory (that's from c to p)
Bush even prevented states form enforcing their predatory lending laws.
they did not believe that govt has a role in our society, you know the whole level playing field thing, they attacked unions, which are the only reason we have a minimum wage at all, and safe work environments. and things like workmans comp..
that used to be straight up civil suits of employees agaisnt employers, and goodness know u'd loos your shirt waiting on a court to find in your favor.....
it is just too much to encompass in a quick blog, we're talking a decade and a half of errodign our systems of checks n balances
now no one is accountable