BUSINESS

Geithner Says Recovery Could Be Slow

07/16/2009 05:12 am 05:12:01 | Updated May 25, 2011

Treasury Secretary Tim Geithner spoke to CNNMoney earlier this week, and he didn't mince words about some of the root causes of the financial crisis, and its chances for a speedy recovery. The Obama administration is set to announce broad new guidelines for the financial industry later this week. Geithner, for his part, offered some interesting thoughts on what's still structurally wrong with the larger economy.

"Households around the world took on too much debt," Geithner told CNN. In the future, Geithner said, don't count on a return to the days of cheap loans. "You're going to see less credit flowing, as people go back to the point when they're living within their means."

"That's a healthy process for the economy," said Geithner. "But it means, probably, that you're going to see a slower recovery than what you normally see."

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