New York (CNNMoney.com) - Treasury Secretary Tim Geithner defended the government's bailout of the financial system on Tuesday, saying it has been a "critical" part of the economic recovery and will ultimately cost less than expected.
Geithner is testifying before the Congressional Oversight Panel, the main watchdog for the Troubled Asset Relief Program, or TARP. The government enacted TARP in 2008 at the height of the financial crisis. The program is due to expire in October.
While the economy remains challenged, Geithner said TARP and other "extraordinary actions" taken to combat the financial meltdown "have helped stabilize the financial system and restore economic growth."
Geithner acknowledged that some of the government's efforts were "unpopular." The program, initially funded at $700 billion, was used to pour billions of tax dollars in to troubled Wall Street banks, insurance giant American International Group and the auto industry.
But he argued that such steps were "essential" to contain the crisis and that they have improved conditions for homeowners, consumers, businesses, and state and local governments.
Not that I like Geithner, at all, but I do believe the TARP funds were necessary to ward off another great depression. Besides, the government is getting paid back with interest.
He would!!! Just look at the picture of this man. Can you really believe anything he says?
12th Commandment of the Right–Thou shall not use Govt. to stave off economic melt down; even when "your" leader has let it happen.
The republicans are not happy that their efforts of destroying America have been stopped, and are hoping they will be given another chance to complete the job in November.
1st Commandment of the Right: the Free Market System is infallible & needs no Govt. oversight.
CNN please post this and not the mispelled first try.
Cue to the sweet ol' guys' claims of 'The market could have handled the matter all by itself!' and other delusional stuff.
If not all, most of the money LOANED to Wall Street and Co. has been paid back with interests.
The situation was so horrible back in 2008 that even with a rock solid free-market thinking POTUS like GWBush the TARP was enacted.
The market needed the government's help.
Cue to the Republicans & Libertarians to mock or deny those facts (without other facts to base their claims).
Well what would expect from this tax cheat?
Obama has shown real lack of judgement in appointing this tax cheat or Turbo tax Tim as he is known to his cabinet. But then Obama's cabinet is full of tax cheats.
TARP would be a lot more palatable to Americans if Wall Street CEOs weren't continuing to get multi-million dollar bonuses for causing the financial meltdown while taxpayer money keeps their companies solvent.
Of course he does. He is on the same page as Obama and that is increasing the government's influence/control on the private sector and our lives.
One of the few things Bush enacted that I agree was necessary...
How could he defend this terrible program?!
The government enacted TARP in 2008 at the height of the financial crisis. The program is due to expire in October.
Yes, the steps were essential.
We the people bailed out big business, and we the people continue to pay the salaries of those in congress who sat back and pretended our economy was excelling.
March 8, 1930
“President Hoover predicted today that the worst effect of the crash upon unemployment will have been passed during the next sixty days.”
I expect we have a long way to go before the worst effect of the 2008 crash upon unemployment passes.
Yep. It's a big "liberal media conspiracy," right GOPers/conservatives? That must be why the article cuts off after throwing the $700B figure in front of you drooling Limbots, but shows that the estimated cost is really $109B only if you click for the full story (and god knows 90% of you only read the headline anyway)? Is that why the article makes it sound like Geithner is just making things up out of whole cloth willy-nilly...you know, by reporting to us he-said-she-said-style what Geithner said, but not providing any of the easily obtainable facts that actually support it and upon which he is relying? You know, little things like just how much of the money has actually been paid back or GM avoiding bankruptcy and keeping people employed and now starting to get back on its feet?
Seriously, you can stuff your "liberal media" whining right where the sun don't shine. These guys are out for ad revenue and to get it, they attempt to create and sensationalize a milk-able controversy over everything. It's a cheaper up-front expense than sending people out to do actual research...and it saves them the "expense" of putting the story to bed with actual facts and journalism ina reasonable amount of time when it could be milked instead. Milked...along with the general public's brains and souls.
Why should the tax cheat care about all the money being wasted and the debt being racked up? It isn't like he will have to deal with the problem in the future...
I'm no fan of Hank Paulson and the way he forced TARP down our throats with little to no accountability of how the $ was spent. However as long was we get all our $ back with interest...it was a success.
Hmmm... I must have missed his extensive thanks to George Bush and Dick Cheney!
Funny how they STILL blame Bush/Cheney for everything under the sun and then take credit for stuff they did that they like or was successful. Unbelieveable...
Extraordinary actions, my foot.
This was government run amok, AT BEST.
And my party should be ashamed, as it was led by George Du(m)bya Bush. Never did take the man as a conservative, rather an East Coast liberal in RINO clothing, just like his blue blood dad.
We will not forget anytime soon...
REMEMBER IN NOVEMBER.
Anyone see how old and warped Geithner looks now. When he took over he looked at least 10 yrs younger.
...((waiting for the right-wingnuts to forget TARP was signed in to law by Dubya))....
lolol...man, this clown-show of an administration gets more pathetic everyday. NOTHING they have done has worked and that's why all of their so-called "accomplishments" are of the unmeasurable variety....."things would have been much worse", "jobs saved", etc.
Everybody who voted for these buffoons should be hanging their heads in shame.
TARP = Unpopular, but necessary.
These TeaBag morons would have loved to see this country go back to the 1800's.
You can put lipstick on TARP but it is still a pig which did not do any good. By the way, did Geithner and the rest of his pals in this administration ever pay their taxes?
You mean, the TARP that President Bush's adminstration devised?
Fellow commenters, I understand that this whole thing is confusing.
Lets just re-write the part of HISTORY where George W. Bush signed this into law, and say that this is Obama's bill, and that the recessions is his fault.
It would make things a lot easier to understand, and I am sure that the frothing right would sleep better at night.