Geithner Says Recovery Could Be Slow

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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Comments

[angrymadliberal]

Your house is worth $125,000 but you paid $250,000 don"t worry with "Mark-To-Market" Neutered you can say whatever you want to about your home value and no one can refute you!
Now when you go in for a loan, simply declare the house is worth $300,000 and along with your clean "ON-THE-BOOKS Balance Sheet" with no visible other debts means you get money from the FED at 1% interest or maybe less!
Why can"t this world be true for ALL AMERICANS like it is for Wall Street?
We do not own Congress and they DO using ill-gotten FUNDS!
Are the Wall Street Banks really healthy? With "OFF-THE-BOOKS" accounting and "MARK-TO-MARKET" Neutered who knows what the truth is!

good articles for a slow news day: http://www.bit.ly/12NCJR/12NCJR>Econ & Finance Articles Updated Daily

[CalculatedRiskTaker]

As long as Americans keep buying foreign cars powered by foreign energy, we aren't going anywhere. Becuase we keep printing and shipping money out of the country, the end is near. You haven't see anything yet.

[butterfliesblossom]

I would expect that considering this is the biggest financial disaster since the depression, but the quickest way to recover would be start putting people back to work. Bring jobs back to the US, stop the greed in corporate America.

[dolphy]

Maybe slower than Japan's the last ten years.

[platanoman]

I don't think so

[KCFreedom]

Not that his statement is wrong, but he's blaming US again.

What he's not admitting to is the awful trade and job policies that have been followed for the last 15 or more years. I realize we all could have saved more but households wouldn't be in the shape they are in, and the recovery wouldn't take as long if we hadn't shipped all of our jobs to 3rd world countries and developed a "service industry economy".

[ErnestineBass]

Clueless Little Timmy.

This asshat don't know chit about chit.

He's a spoiled child.

[reg88]

his comments make sense.

[WritusMaximus]

Yeah, common sense does make sense. So deep go the thoughts of Geithner, no wonder Obama anointed him as INDISPENSABLE!

[watchTVgetSTUPID]

Timmy is the problem.
Summers is the problem
Bernanke is the problem
Greenspan was the problem
Paulson was the problem

Clearly the problem will not go away as long as the problem stays in power.

[doogiedude]

IMHO, the reason "Households around the world took on too much debt," is the ongoing increase in prices coupled with the simutaneous decrease in real wages. I think household debt burden is symptom of this.

Until we have consumer debt destruction and a substantially decreased current account defecit, household economic woes will continue.

I think the U.S. should cancel all "free trade" agreements and enter into fair trade agreements with countries who agree to worker rights and evironmental protection standards.

[Artos]

Of course he says that now since no one was fooled by his earlier B.S. about how all signs point to a recovery happening by years end. Will wonders never cease.

[doogiedude]

I think he was refering to the banking industry

[WritusMaximus]

A distinction without a difference. We need the bqnks for a recovery.

[LeeCalif]

http://informationclearinghouse.info/article22836.htm

America Is Bankrupt

[Brute]

Who the hell is in charge here?

Last week the message from Obama was that the economy has turned the corner.

This week they're saying that the "economic picture is not rosy" and "recovery will be slow".

Cmon!

Do these guys even talk to each other?

[TJCole]

Goldman Sachs and The Bilderberg Group of course..!

[doogiedude]

President Dimon

[ThatOne4Me]

"Households around the world took on too much debt," Geithner told CNN.

But crooked banksters and AIG are allowed to live large while the rest of us have to su.ck it up.

"Thanks but, no thanks!"

[WritusMaximus]

Easy on Geithner! You dare not question Obama's Indispensable!

[TJCole]

This is only because we didn't Nationalize these corrupt banks, as in the Swedish solution and reorganize them so they served the nations best interest and that of the people...and rather chose to follow Japan's misguided regime, that has placed them in the ditch for over a decade..!

Heck of a job there Timmy, heck of a job..!