WASHINGTON (CNN) - Senate Majority Leader Harry Reid said Monday the Treasury Department's plan to rid banks of toxic assets carries "the potential for both risk and reward."
But he said the risk of using public money to buy troubled assets is outweighed by the need to act quickly to get credit flowing again.
"The Treasury Department plan is based on the sound principle that if we are to revive our economy, we must unfreeze the credit markets so people can get the loans they need to keep their small businesses open, buy a car or send their children to college," Reid said in a statement.
"Like any investment, this plan carries the potential for both risk and reward. But above all, we must act – one risk we will not take is standing on the sidelines and doing nothing while a bad situation gets worse."
The dow is almost hit 500 points Harry. Don't get a hissy fit. Have a little faith.
They should have done this in the first place.
If changing the course towards disaster means taking risks in diverting this nation from a disaster bigger thasn that of the depression era...I'm willing (and my tax dollars) to take the risk. Sitting around whinning and bitting our finger nails won't get it done.
Ah, yes, we had to hear from Reid...it's been at least 3 days since he's been mentioned on the news.
I'm a moderate who voted for President Obama, but Reid and Pelosi are his worst enemies. If he cannot voice complete support, he should keep his gob shut. His comment is valid, but it risks making it sound like the Democrats don't support President Obama, and that's bad.
ANY investment carries potential for risk and reward. That is such a nonsensical statement, that it should win an award for Most Obvious.
Of course it's risky. Everything having to do with the economy is risky right now. I understand what Reid was saying, but it just seems like common sense.
A wise and sane comment by Harry Reid on Mr. Geithner's plan. The plan may be risky but it also has bountiful rewards to reap and stimulate the economy once again. I am sure the GOP is ready to raise hell on this without any substantive laln of their own just to score some political points.
Its worth the risk? What's next, buying lottery tickets with taxpayer dollars? At least in the lottery, SOMEONE wins!
We got into this mess because of TOO MUCH interference from the government, how is more intererference going to help? Politicians and their puppets need to stop fooling around in the marketplace, the simply have no idea how to make the economy work. Acting for the sake of acting is stupid. Actions should be well-thought out and supported by precedent. Spending my money so you can keep your constituents happy isn't good politics, it's theft.
Well it seems CNN has been reporting that the likes of those big companies everyone is loving to hate, made money on the downfall and problems and will now be making probably profits on the upswing using taxpayers' money to do so. So once again, the taxpayer foots the bill for private profits.
Come on Harry, you are beginning to sound like McCain, Cantor and Boehner. Even though Geitner may be a republican, I think he knows more about the economy than our elected officials in Washington.
Nice headline CNN: "Reid says Geithner plan could be risky."
Per the articel, what the man said was "Like any investment, this plan carries the potential for both risk and reward. "
I guess if you were rooting for the economy, you could have used the headline "Reid says Geithner plan could be rewarding" with identical conviction."
Of course, Geithner's plan can be risky. Living is risky. Investing is risky.
What's the old saying "no pain, no gain"? At least Obama has been trying to solve the Bush Disaster.
@ Jackie in Dallas....... Agree with 100%! Reid & Pelosi are Obama's enemies.
The Dow rocked today! I think its time to start investing in American again, people, the stocks are on SALE!
Well, they said that the Obama administration would be tested in its first 100 days. But I didn't think they meant by Reid and Pelosi! Guess they think Obama is weak, too.
Treasury Secretary Tim "Tax Cheat" Geithner's plan is going to cost $1,000,000,000,000 and saddles the taxpayer with 90% of the downside risk. No wonder the market was up 500 points today – they get all the upside and us poor taxpayers get all the downside. Just another example of Geithner and Obama taking care of Wall St just like Bush did.
Good grief...ALL plans are risky. Isn't that what stock market is about or for that matter starting a business? Taking risks. No risk, no reward. Start any business and there's the risk consumers won't buy. Buy a house for 30 year mortgage and there's the risk something will happen to the family income...or a tornado wipes it out.
I can appreciate Reid reminding us there are risks. It's nothing new.
Of course it could be risky,,,, if it had been easy... and a sure thing wouldn't something have been done before...?
The government standing on the sidelines and allowing lending institutions to decide to whom they lend money is a much less risky action than allowing an entity with a proven track record of mismanagement such as the government to get involved. If people want a economic system in which no cycles exist, capitalism is not for them and they should relocate.
Why doesn't the headline say "risk... outweighed by the need to act quickly"? WIthout reading on after the headline, one would think that Harry Reid was opposed to Geithner's plan. While, I am not a huge fan of Harry Reid or Nancy Pelosi I am a fan of Obama – he is absolutely trying to do the right things to get this economy rolling in the right direction. I don't make six figures but I am smart enough to know that it may be necessary to let go of the AIG bonus debacle (whic h is only 1/1000th of the billions in bailout) and move forward. Let's just figure out what we have learned from the mistakes and not make the same ones over and over.
I am not arguing that what Harry Reid is saying is not right, but it just amazes me that whenever POTUS or his administration makes a decision that does not include Harry Reid or Nancy Pelosi's blessing, they always have something to say without even giving something a chance to work or not work. You can voice you opinion without talking to the media to publish your story. I say stop it right now Harry and Nancy!
I guess we could play it safe and continue the course of the last 8 years. Harry, I am not sure you should be speaking for the majority.
To Mel – This is the plan the Geithner "rolled out" almost a month ago.
It's a complex problem, that required a complex and innovative solution.
All they are doing , now, is rolling out the details.
All the other aspects of the financial rescue package which were rolled out over the last two months are also showing signs of being effective.
We got into this because Phil Gramm and John McCain eliminated a lot of regulations and safeguards in 1999.
People need to a little bit closer attention... The taxpayers aren't paying "$1T", that's what is being aggregated through leverage with the private investors.
Private money hasn't been willing to step in and help over the last 6 months, and the government doesn't have enough money to fund the plan all by itself.
This is the only program that would work, that includes both private and public money and risk/reward.
The alternative is a prolonged depression like the Japanese went though in the 90s.
Alvino- didn't John McCain try to push for more regulation, but it was filibustered by Chris Dodd? I could be wrong, but I don't think I am.
Why is it that everyone is saying what is not a good idea but they don't have a idea that they can give to help solve the problem that the country is facing. If you feel everything that the Treasury Department is doing will not work get off your lazy A$$ and find a way to make it work... Pleas Post Comment Thanks