June 15th, 2009
02:37 PM ET
14 years ago

Geithner: Economy in 'early stages of repair'

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/04/24/art.getty.geithner.jpg caption=" Tim Geithner called the nation's antiquated regulatory structure a 'spectacle.'"]NEW YORK (Fortune) - The stock market's rally serves as "broad validation" of the Obama administration's financial rescue efforts, Treasury Secretary Tim Geithner said Monday.

But Geithner also stressed that the economy faces "an enormously challenging period ahead" - a view that was vigorously seconded by a panel of economic skeptics headlined by Nouriel Roubini, the economist known as Dr. Doom.

The comments came at an economic discussion sponsored by Time Warner, which is the parent company of Fortune and CNNMoney.com.

All of the panelists agreed the nation's financial regulatory apparatus is a mess, with Geithner calling the overlap among oversight agencies a "spectacle."

The administration is scheduled to outline its regulatory reform plan Wednesday. Geithner said the program, to be unveiled by President Obama, will result in a financial system that's more stable and more efficient. He added that avoiding future crises should make the finance business "a little less exciting."

Geithner said the financial system is in "the early stages of repair" following a round of capital-raising at big banks and other financial institutions.

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Filed under: Tim Geithner
soundoff (70 Responses)
  1. Greg Pottstown Pa

    This is a funny statement from Timmy G considering that Biden just said today that he and the President were wrong on the effect that the stimulus would have on the jobless #s. Unemployment is always the best way to gauge the economy.
    Funny when the market was tanking in response to the stimulus the Obama administration was calling it a tracking pole and saying that the economy could not be judged on the up or down swing of the market. But it looks like that is just what Timmy did.

    June 15, 2009 03:52 pm at 3:52 pm |
  2. matt

    When the stock market was tanking, Obama came out and said that he did not pay attention to the stock market as a barometer of how his policies were effecting the markets. Now that the market is up, his whipping boy Geithner wants to use the stock market as "validation" that the policies are working?

    What about the record unemployment?

    What about the CBO's own accounting of how far into debt the Obama policies will take us?

    You libs can't have it both ways.

    June 15, 2009 03:53 pm at 3:53 pm |
  3. bsmith171

    what would geithner know about the economy?
    he couldn't even figure out the basic Turbo Tax program.

    Geithner is a 25 year government employee.

    June 15, 2009 03:53 pm at 3:53 pm |
  4. Dutch/Bad Newz, VA

    From reading these posts, it seems like some people expect the economy to recover overnight. Well think again. I can begin to see signs of the repair. I still have a job. My boss is able to get credit and make payroll. Unemployment is slowing down. People who have been layed off have been able to receive unemployment benefits longer. This crisis didn't happen under 44's watch, it happened under 43's. Let's not forget that people. I'm confident that our President has the middle-class' interest at heart. Carry on Mr. President.

    June 15, 2009 03:54 pm at 3:54 pm |
  5. Fla.

    Fortunately, there are some cautiously optimistic signs in our economy with slower unemployment, increased consumer confidence, TARP profits, home sales rising, etc.

    We still have a long way to go and at least the administration appears to be heading in the right direction. Godspeed.

    June 15, 2009 03:54 pm at 3:54 pm |
  6. Chris

    Ah yes, politics at it's best. That's like saying Obama was "wishing" for our economy to tank so that he could pass his massive stimulus package.

    June 15, 2009 03:54 pm at 3:54 pm |
  7. Once You Vote Black: Mute Newt

    Lets be honest, the GOP hopes Obama is wrong on this and wrong on Iran, and just wrong in general. It would serve the US right for picking a Blackman who was not even born in this country, and yata yata yata. Face it GOP you only love the country when Whites are in control. Well if you don't like it now back up and go back to Europe. The coloreds have got the ship.

    June 15, 2009 03:55 pm at 3:55 pm |
  8. Cleaning up after W

    Wow. Reading all these comments, I now know where the all the right wing-nuts are hanging out.

    Do you tools really think that Obama can fix the economy in 5 months when it took Dubya 8 years to tear it down??? Show me where Obama has ever said that the economy could be fixed in a year or less.

    June 15, 2009 03:58 pm at 3:58 pm |
  9. Once You Vote Black: Mute Newt

    Matt when the market was down Hanity said it was Obama's fault. When it went back up Hanity said he does not care about the market. Then it went back down and the blame game continues, now that its up I am sure he will say it is not an index. We all want it both ways.

    June 15, 2009 03:58 pm at 3:58 pm |
  10. Mike in SA

    OK, when the market goes down Geithner says we should ignore the market because it is not a valid indicator of what is happening with the economy, but now when the market is up, it is a "broad validation" of the Obama administration's financial rescue efforts. HAHAHAHAHA!!!! That is me imitating the students at his address in China, laughing at his incredulity. As in "HAHAHAHA....I can't believe you're stupid enough (or arrogant enough) to think I will just buy that trash you're putting out there. Really...stop it...you're killin' me!"

    Another even larger part of the market gain was from commodity based stocks and funds which are trading 150% above what they were in November. That should be noted as a "broad validation" of the thought that pretty steep inflation is well on it's way. HAHAHA...oh...that's not so funny.

    June 15, 2009 04:00 pm at 4:00 pm |
  11. dominican mama 4 Obama

    Stay on course Mr. President, most of the country is behind you. It appears that the only ones who will pooh-pooh any improvement you've made so far are either: happily at home not looking for work and collecting the extended unemployment benefits that you've provided them with; or stay at home moms with rich daddy husbands.

    June 15, 2009 04:02 pm at 4:02 pm |
  12. Dawn in Pa

    Hey Greg from Pottstown,

    You live in an area where your industries are gone, how is Flagg Brothers, Firestone, you had Dana Corp. Closed also.

    You live in Montgomery County, I live in Berks County.

    and to Roger, everything you wrote all makes sense, but none of it is Obama's fault... this has happened back in the 70's, don't you think that we would like to have the steel back in PA...

    Thanks, so stop blaming him, plus we use American Steel, but it is used in Government building.

    June 15, 2009 04:02 pm at 4:02 pm |
  13. Mick

    Uh oh. More bad news for the Repiglican Party. How can they spread their fear mongering lies if people start to see signs of the recovery? A number of large and small banks have repaid their TARP loans WITH INTEREST, unemployment numbers are stabilizing, the value of the dollar is increasing, the housing market is picking up and personal spending is rising.

    The stock market has recaptured all is losses for 2009 and was "in the black" for the calendar year last week. Why did the markets drop today? The other G20 nations announced they're ending stimulus spending because – more bad news Repiglicans – their economies are beginning to rebound as well.

    Don't forget Repiglicans, you idiots had 12 years to destroy the American economy this time around, just like Reagan did with the Saving and Loan deregulation scandal, it will take more than 5 months to repair it. But don't worry, the grown ups are now back into control and will fix your broken toys so you can ruin them again in another 10-15 years.

    June 15, 2009 04:02 pm at 4:02 pm |
  14. Dont blame me

    Let's face facts here.

    Geithner DOESN'T HAVE A CLUE!!!

    Remember all of the OTHER statements that he has already said that have been WRONG??????

    June 15, 2009 04:02 pm at 4:02 pm |
  15. LacrosseMom

    The GOPers will continue to deny that the economy is showing signs of a recovery.

    Even when most economists say "we made it through the worst economic disaster since the Great Depression!" The GOPers will continue to deny recovery!

    Considering the FACT that President Obama INHERITED the Bush Disaster from a Republican president, the GOP's rhetoric is to place blame on Obama every chance it gets! And obstructs everything. Offering no new ideas, no solutions!

    The Market IS down today, however, the Market has been on a rally for sometime

    June 15, 2009 04:03 pm at 4:03 pm |
  16. CAL

    @ matt's comments

    You cannot be this stupid. Even though the President does not look at the stock market to see where the economy is,it had to be mentioned, if you knew just a little about how the economy works you would know the up and down of the markets is based on what's going on in the economy. You haters can't stand the fact that this economy is turning around, slowly but mind you turning for the good. You hate it and I love to see you nay sayers squirm!!!! LOL

    June 15, 2009 04:03 pm at 4:03 pm |
  17. Ryan Indy

    Didnt Obama say if you give more money for the Stimulus, that unemployement would not raise about 8.0( it is currently 9.4%). Didnt Obama say that he would create 600K New jobs by the Summer( yep not even close again, Government reports show his programs have created between 5-10k new jobs not even close to 600k nor will he be by end of summer)? Do you see a trend here? All you uninformed Democrats that keep saying Bush put us in this finacial mess and he spent SO much money. Well guess what Mental Midgets , Obama has spent or allocated more money in the first 3 months did GW Bush spent in 8 yrs? So please tell me who is the reckless spender? You people are hypocrites and the days of Blaming Bush for everything including you blaming Bush for why your lives ar so Miserable and Pathetic ,are coming to an End , very very soon.

    June 15, 2009 04:03 pm at 4:03 pm |
  18. Once You Vote Black: Mute Newt

    the rally has gotten ahead of any real economic rebound. Dow sinks , Yes Demwit that will happen from time to time. Its always been that way. Best to reserve judgement until the administration has had a chance to work all of its kinks out. Its the nature of the market in a real world.

    June 15, 2009 04:04 pm at 4:04 pm |
  19. Capital-raising...

    Yes, the big banks and other financial istitutions raised big bucks called BAILOUTS or better still corporate wellfare coming from the pocket of poor and unemployed Americans....

    And that is how the economy is improving...So help us God !

    June 15, 2009 04:04 pm at 4:04 pm |
  20. Grrr-awful-o

    The economy will heal itself. It always does. It's as normal and healthy for the economy as forest fires are for forests (they kill of diseases and parasites). Too bad we're now a couple of Trillion dollars in the hole trying to fix what wasn't really broken in the first place. That's what's going to cause us long term problems. Not some failed companies that have driven themselves into the ground. Those are going bankrupt anyway – just as they would have if we hadn't mortgaged our children's future to try to prevent it. Dumb!

    June 15, 2009 04:06 pm at 4:06 pm |
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