Geithner on Lessons from Lehman

(CBS)  Treasury Secretary Timothy Geithner's department has put out a report detailing the next phase for stabilizing and regulating the financial system.

In an exclusive interview, Geithner told CBS Evening News Anchor Katie Couric that the economy is in much better shape today than it was when the meltdown began last September.

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Timothy Geithner: A year ago, people for the first time in a century in this country were wondering about whether they should keep their money in banks.

But today, you have a lot of private capital came into the financial system. The system is stronger because of that. Borrowing costs have coming down for corporations and for families. Those are the initial signs of improvement. And that's why -- why the economy is starting to grow again.

Katie Couric: Having said that, it's been a year since Lehman collapsed. And yet, Congress has passed only one major piece of financial regulation having to do with credit cards. Derivatives still largely unregulated. Huge bonuses are back. So what has really changed?

Geithner: Katie, we're gonna change this financial system fundamentally. We have to. 'Cause we can't afford to let this country be in a position again where you can suffer this much damage. And that's gonna require a comprehensive reform. But it requires legislation.

Couric: This kind of headline must give you indigestion. It says "Progress is slow on regulatory overhaul, posing risk of even bigger crisis."

Geithner: Again, I, actually I think Congress is gonna move this year. I think they're gonna move earlier than any country in response to past crisis has thought about reform.

Couric: Let me ask you about bonuses because some firms cutting back - on them are actually raising salaries. As you know, five of the biggest banks set aside $60 billion to cover compensation. That's just $17 billion less than 2007. And with layoffs that's a lot of fewer people getting that money. So doesn't this amount to business as usual in many ways?

Geithner: But it, we can't let business as usual, we can't let things go back to where they were.

Couric: But isn't this a shell game? They're just putting more money for salaries, and less for bonuses-and people are still getting mega payments?

Geithner: --If that's what happens, then we would have failed.

Couric: Someone is going to have to pay down the mountain of debt created by this financial crisis. Do you believe Mr. Secretary-- an across the board tax increase is inevitable?

Geithner: And I think people recognize that these deficits are unsustainable. And if we're gonna have a stronger economy in the future we have to bring them down.

Couric: Is an across the board tax increase inevitable?

Geithner: I don't-- I don't think so, no.

Couric: As you know economic growth is powered by consumer spending. In a recent Gallup Poll found that 70 percent of Americans are cutting expenses. So what out there-- Secretary Geithner - might light a fire under the economy and create sustainable growth?

Geithner: It's gonna come gradually. But the first step is to pull the economy back from the abyss.

Couric: And do you really feel that you have done everything in your power to put systems in place as quickly as possible--possible to prevent a financial crisis of this magnitude from ever happening again?

Geithner: Not absolutely. N-- not yet. But as I said that requires Congress legislating reforms.

Watch The Full-Length Interview Here:


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[reality42]

Timmy is a joke all around the world and Americans are looking bad for letting the crooks and cheats walk all over yous

[wardogos]

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson, Letter to Treasury Secretary Albert Gallatin (1802)

A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional way along with his fellows, so that no one can really blame him." - John Maynard Keynes, 1931.

When all government, domestic and foreign, in little as in great things, shall be drawn to Washington as the center of all power, it will render powerless the checks provided of one government on another, and will become as venal and oppressive as the government from which we separated - Thomas Jefferson


The Federal Reserve is Illegal under the Constitution you all haven't figured that out yet? These are the freaks that are destroying your country not to mention there control on the rest of the world.

Credit is a matter so subtle in its essence, that, as it may be obtained almost without reason, so, without reason, may it be made to melt away.

The real rulers in Washington are invisible and exercise power from behind the scenes. Supreme Court Justice Felix Frankfurter,1952

[wardogos]

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." Thomas Jefferson, Letter to Treasury Secretary Albert Gallatin (1802)

A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he is ruined, is ruined in a conventional way along with his fellows, so that no one can really blame him." - John Maynard Keynes, 1931.

When all government, domestic and foreign, in little as in great things, shall be drawn to Washington as the center of all power, it will render powerless the checks provided of one government on another, and will become as venal and oppressive as the government from which we separated - Thomas Jefferson


The Federal Reserve is Illegal under the Constitution you all haven't figured that out yet? These are the freaks that are destroying your country not to mention there control on the rest of the world.

Credit is a matter so subtle in its essence, that, as it may be obtained almost without reason, so, without reason, may it be made to melt away.

The real rulers in Washington are invisible and exercise power from behind the scenes. Supreme Court Justice Felix Frankfurter,1952

[bzzpd]

pilar5050

If you don't believe a tax increase is coming.....you are mathematically ignorant.
All of these news organizations haven't got enough guts to report the 82.7 Trillion dollar deficit.
Look at(usdebtclock.org)....

The off the book debt of 60 Trillion for social security IOU's and 12 Trillion for bailing out banks plus the National debt of 11.7 Trillion all add up to 82.7 Trillion dollars.

With 153,500,000 working people in the United States.....each of them owe $538,000.00 dollars respectfully.
We are going to get a tax hike. Get a clue.

[bzzpd]

pilar5050

If you don't believe a tax increase is coming.....you are mathematically ignorant.
All of these news organizations haven't got enough guts to report the 82.7 Trillion dollar deficit.
Look at(usdebtclock.org)....

The off the book debt of 60 Trillion for social security IOU's and 12 Trillion for bailing out banks plus the National debt of 11.7 Trillion all add up to 82.7 Trillion dollars.

With 153,500,000 working people in the United States.....each of them owe $538,000.00 dollars respectfully.
We are going to get a tax hike. Get a clue.

[pilar5050]

The producer of last night's CBS News with Katy Couric deliberately misled the viewer by showing an introductory clip of her interview at the beginning of the program in which she asked Geitner if an across the board tax increase would occur and a clip of him nodding is shown.

It appeared as if he was agreeing.

In the actual interview he did not nod in agreement to this question. His words and his gestures were in the negative.

Dirty tricks CBS!

[faceofus]

This man has little credibility with Americans.

[faceofus]

Sorry. this comment was meant to be a stand along remark directed toward
Geithner's lack of credibility.

[jokin04]

I don't believe a word that comes out of Tim's mouth.
I used to love to watch the CBS Evening News every night.
There is no CBS Evening News anymore, I really dont know what you guys are.
Please wake up for us, the American People. You haven't been watching out for us for some time.

[faceofus]

Sad but nonetheless true. The news should serve all the people.

[bzzpd]

He doesn't believe a tax increase will happen????Who put this idiot in this position? Obviously they are going to tax everyone of us for this fiasco.

This guy is just another blatant liar. Simple mathematics....which this clown obviously doesn't know with his college degree.....dictates that the United States is already bankrupt.

[bzzpd]

Geithner needs to take three reams of paper to students across the United States and ask the question...
"How long would it take you to take 60 Trillion dollars from the United States citizens, if you printed 40 billion dollar in IOU's on every sheet of paper in these three reams? Each sheet is worth 40 billion dollars...and there are 500 pages in each ream."

The students would raise up their hands and ask how quick the copy machine could print off 1500 sheets of paper, with IOU's of 40 Billion a piece on each sheet of course. Maybe a few hours? One filing cabinet to hold the paper.

That's how easily the United States government stole 60 Trillion dollars of off the book debt from every United States citizen with the extra social security money that came in every year over the last umptine decades.

We now owe 82.7 trillion dollars.(usdebtclock .org) 153,500,000 people are working in the United States.
Divide 82.7 trillion by that number and each of us owe $538,000.00 dollars on the debt.
We each owe half a million dollars for the debt.

Hyperinflation anyone???

How are we going to pay for this mess?