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. demwit

    Meanwhile..., out in the real world.

    Economic woes slam stocks
    Markets fall sharply on worries the rally has gotten ahead of any real economic rebound. Dow sinks over 200 points; S&P 500 and Nasdaq drop almost 3%

    June 15, 2009 02:39 pm at 2:39 pm |
  2. Fed Up

    Oh he finally paid his back taxes!!

    June 15, 2009 02:40 pm at 2:40 pm |
  3. Enough

    He can see into his crystal ball and declare all is well. Maybe he and the rest of Obamas cabinet finally paid their taxes!!!

    June 15, 2009 02:42 pm at 2:42 pm |
  4. Texas Teacher

    I do believe that we are in the early stages of repair... very early judging by the amount of people out of work! Instead of spending billions on bailing out Wall Street, we need to start thinking of other ways to help make recovery work... let's cut out the middle men on Health Care... let's cut out the lobbiests in DC... let's invest in the companies that will put our people BACK to work! We have to clean up D.C.... not support the status quo!

    June 15, 2009 02:44 pm at 2:44 pm |
  5. Will

    What planet is this guy on?

    "Early stages of repair" = His speculator buddies will soon be making millions again, and the American middle class will still be under-employed and left holding the tab for the wealthys' deeds.

    June 15, 2009 02:44 pm at 2:44 pm |
  6. Henry Miller

    "Geithner: Economy in 'early stages of repair'"

    I'm sure this disappoints Rahm Emanuel, the guy who said, "You never want a serious crisis to go to waste." He and Obama have taking advantage of various American crises since Obama took office to try to push the country toward a socialised economy and socialised medicine. I'm glad the crises are fading–if indeed they were ever anything other than administration's attempts to scare people into tolerating their efforts.

    June 15, 2009 02:48 pm at 2:48 pm |
  7. beachgirl

    WHERE Mr. Geithner???? CAN'T SEE the early stages yet!!!!

    June 15, 2009 02:50 pm at 2:50 pm |
  8. Hugo

    Let's see, a trillion dollar "stimulus" injection, that is $1.00 per second for the next 31,000 years. My prediction is that the economy will pick up somewhat in 2011 to give the appearance of recovery in time for the next vote. Then inflation will take hold and that will be all she wrote folks. What I would like to know is where are the private sector jobs, all I see is government jobs that are paid for with tax dollars that do not create commerce. Me thinks we is broken! If you were broke would you charge out your credit card at 21% interest and think you would ever pay if off?

    June 15, 2009 02:51 pm at 2:51 pm |
  9. jason, tx

    Yup, I predicted end of summer as the time for full upswing. Obama had the vision and know how to make this work and he has done a great job. Now, let's get out of this recession and get some real health care reform.

    June 15, 2009 02:52 pm at 2:52 pm |
  10. J.P.

    We will be in the final stages of economic repair after the 2010 and 2012 elections when we can, once again, defeat the forces of failed liberal socialism and spend the NEXT 25 years creating wealth and prosperity...

    This is cyclical... in 25 years, we'll very likely have to engage in yet another stupid campaign of "change" from kids too young to have lived through the previous recession. The best thing that will come out of these Obamaruptcies is the creation of the next generation of Reagan Democrats. Because somewhere, somehow, someone is actually going to have to create wealth for liberals to spread around.

    June 15, 2009 02:52 pm at 2:52 pm |
  11. Dave

    Here come Timmy boy and the others with their false market rebound.

    June 15, 2009 02:53 pm at 2:53 pm |
  12. Fair is Fair

    With all due respect, Timmy, losing jobs at a slightly slower pace is not my vision of recovery. When I see the economy adding PRIVATE SECTOR jobs, I'll feel differently.

    June 15, 2009 02:54 pm at 2:54 pm |
  13. Polly

    He's denying the real problem that he knows is out of his control to handle.

    June 15, 2009 02:55 pm at 2:55 pm |
  14. Shirley In California Now On The Fence Re Obama

    Thank you CNN for a REAL news story.

    You're right Geithner and here we are discussing name calling. Can we please stick to the issues? Please. A lot of people are unemployed and uninsured. Let those who wish to name call-name call. The rest of us want to keep aprised of the issues.

    June 15, 2009 02:57 pm at 2:57 pm |
  15. Tony

    Looks like he has his Hocus Pocus hands going again................

    June 15, 2009 03:00 pm at 3:00 pm |
  16. James

    Thank you President Obama for having the guts to do what it needs to get our country BACK on track!!!

    So blessed and grateful that we have President Obama!!!

    June 15, 2009 03:02 pm at 3:02 pm |
  17. G SMITH PA

    REALLY, The Obama Economy is a disaster and getting worst.

    June 15, 2009 03:04 pm at 3:04 pm |
  18. Legna

    Geithner needs to stick his head out of his fox hole and observe what is truely happening. Bankruptcy after bankruptcy ....empty buildings...empty homes..manufacturers closing...small business closings..hotels & motels closing...airlines reducing routes..unemployment around 15 to 20% {if acurately reported}..banks holding onto money waiting to lend it to the government at 10%...congress spending money wrecklessly...what does it take to wake him up????

    June 15, 2009 03:05 pm at 3:05 pm |
  19. Fix America's problems....

    Thats right fix Americas problems Obama and keep out of the Iranian
    Elections outcome...The Irani People are capable and smart enough to solve their own problems whatever it takes....so media you too as well stop meddling and report just the facts.....!!!!!!!!!!!!!!!!!!!!!

    June 15, 2009 03:08 pm at 3:08 pm |
  20. Polly

    The Chinese are laughing their crystal balls off...at his hocus pocus hands...

    June 15, 2009 03:09 pm at 3:09 pm |
  21. Dawn in Pa

    Please... lessons learn and taught...it is called the Great Depression and what FDR had done to get the economy back on track. We may not know how long we were heading on a downward spiral. We were told back in September we were in a recession for a year, but it could have been going on alot longer.

    But we as American people are not very patient...

    June 15, 2009 03:09 pm at 3:09 pm |
  22. VL- Chicago

    Well, markets go up and down!! Obama and his tax cheat cronies are impeding the govt from getting better, because they want govt to own private businesses!!
    Own car companies, fire CEO's, tax health benefits...is this the CHANGE you Obama nuts wanted? He make W look like the best president in the world.
    Obama nuts, go read a history book.

    June 15, 2009 03:09 pm at 3:09 pm |
  23. dominican mama 4 Obama

    This is exactly why we elected Obama, to put in place a set of checks of balances for all of these out of control businesses in the private sector as well as federal agencies. Remember the $600 hammer?! And in spite of what the naysayers are regurgitating, there are signs that the economy is improving. My husband who'd been out of work for seven months is now amongst the employed, in his area of expertise.

    June 15, 2009 03:10 pm at 3:10 pm |
  24. bozo obama

    this is the guy that got laughed off the stage by students in China for saying our money was stable ? Another bozo cabinet appointee.

    June 15, 2009 03:11 pm at 3:11 pm |
  25. skyhawkdriver

    Those famous words "I'm from the government and I'm here to help"..the fractured fairy tale of the obumbler continues it's downward tumble to mediocrity..just like the stock market

    June 15, 2009 03:13 pm at 3:13 pm |
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