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. Charlie in Maine

    Bush &co were digging us into a deep hole. I hired Obama to stop digging. Great job so far but the next job is to find a ladder. Let's get busy.

    June 15, 2009 03:14 pm at 3:14 pm |
  2. Larry from RI

    Nothing will change until we (the US) have jobs that pay a living wage.
    Bring back the manufacturing jobs and our economic troubles will soon be a thing of the past.

    But that is doomed by the greedy CEO's and Wall St. goons who sold us out to communist China, India and many other "3rd world toilets" so CEO's can line their pockets at the middle class's expense!

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

    It probably is no thanks to the current administration. They are slowing everything down. Recessions run their course. I would hate think that the administration thinks they did anything to help, I believe if we had an honest report, (never will get from MSM) we would find they slowed the recovery and have set us up for the hyperinflation which will follow. Check the trend on gas prices since dear leader took office.

    June 15, 2009 03:16 pm at 3:16 pm |
  4. Randolph Carter

    J.P. wrote: 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…

    Yeah wealth and prosperity for the top 5 percent. My pay hasn't gone up in 8 years. I don't get vacation time or benefits because I'm a "contractor." I've been a contractor for 2 years because all of the jobs in my field (highly technical computer mumbo jumbo) have been outsourced to India and elsewhere. Thanks Republicans. Have a nice day!

    June 15, 2009 03:18 pm at 3:18 pm |
  5. Ted

    Mission Accomplished! Look, he even dressed up like a real banker!

    June 15, 2009 03:20 pm at 3:20 pm |
  6. Get Real

    Has Geither learned how income taxes work yet?

    June 15, 2009 03:21 pm at 3:21 pm |
  7. Randolph Carter

    Relax, southern cousin, gas prices are going up just like they have every single summer since you or I can remember. They'll come down in September just like always. Have a nice day!

    June 15, 2009 03:23 pm at 3:23 pm |

    Geithner: rock, paper, scissors?

    he is the poster child of the Obama administration.

    June 15, 2009 03:25 pm at 3:25 pm |
  9. Robin in Tampa, FL

    I'm glad Timmah and friends are finally rolling out with new sweeping reforms ... it's a bit on the late side, but better late than never.

    June 15, 2009 03:25 pm at 3:25 pm |
  10. pba

    I wonder if the Democrats in congress will oppose Obama's attempts to reform the oversight agencies the way they opposed Bush's attempts?

    June 15, 2009 03:27 pm at 3:27 pm |
  11. Fair is Fair

    @ Randolph Carter:

    So you must be absolutely thrilled with all those H1B visas that the Clinton administration started doling out, huh? And that NYT columnist Thomas Friedman says we should dramatically increase?

    June 15, 2009 03:29 pm at 3:29 pm |
  12. Randolph Carter

    Fair is fair, you ain't kidding. Have a nice day!

    June 15, 2009 03:31 pm at 3:31 pm |
  13. Roger


    HOW ? HOW ?? HOW ??? THE HECK ON EARTH, is our Economy going to recover when:

    1………. We are importing more and exporting less. We have a big trade imbalance.
    2………. Our dependence on oil is overwhelming. We do not use oil, we waste oil.
    3………. Our Manufacturing jobs are all gone.
    4………. Our Iron and Steel industries are all gone.
    5………. Our textile industry of North Carolina is all gone.
    6………. Our Auto industry is all gone.
    7………. We have everything made in China.
    8………. We have outsourced to India because of cheap labor.
    9………. We are still spending billions on 2 wars. Wars are draining our Economy.
    10………. We import nurses from Philippines.
    11………. Our Construction industry is full of illegal immigrants.
    12………. Our Banking is Unregulated and Wall Street is full of Crooks and Rascals.


    June 15, 2009 03:33 pm at 3:33 pm |
  14. phoenix86

    Guess Timmy spoke too soon. The market is not as naive as Obamabots. You cannot spend trillions, tax trillions, borrow trillions, expropriate billions, and invest millions and expect the market not to notice that the economy will not recover.

    I'm reminded of Reagan's words (updated from Carter):

    A recession is when your neighbor loses his job.
    A depression is when you lose your job.
    Recovery is when Obama loses his job.

    June 15, 2009 03:37 pm at 3:37 pm |
  15. ron

    We are not doing enough. Are we a nation, or a society? The only way is to socialize health care and (higher) education.

    The country moved to the right during Reagan. Since then our standard of living has eroded as evidenced by the two income family is now the norm.

    We have been losing our standard of living since we adopted Reaganomics. Taken to the extreme (Bush), we have the world-wide economic meltdown we are now seeing.

    You don't need a phd in economics to figure this out, just look around you.

    June 15, 2009 03:38 pm at 3:38 pm |
  16. S Callahan

    God laughs
    e sits enthroned above the circle of teh earth
    and its people are like grasshoppers
    He stretches out the heavens like a canopy
    and spreads them out like a tent to live in
    He bring princes to naught
    and reduces the rulers of this world to nothing
    No sooner are they planted
    no sooner are they sown
    than he blows on them and they wither
    and a whirlwind seeps them away like chaff.

    This economy will only see 'real' growth when this nation turns back to God.

    June 15, 2009 03:38 pm at 3:38 pm |
  17. Josh from Knoxville, TN

    LOL. Kind of unfortunate that the market shed around 200 points as he states that the market rally validates Obama's stimulus plans and policies.

    Ouch. >> Wry smile <<

    June 15, 2009 03:39 pm at 3:39 pm |
  18. Nadilyn

    What happened to bringing jobs back to America?? That would definitely help our economy instead of printing money for us taxpayers to pay back. GIVE US OUR JOBS BACK!!!

    June 15, 2009 03:41 pm at 3:41 pm |
  19. Don't tell...do show....

    Please stop telling that we are there and show us where....where are the improvement happing ? everything is deminishing jobs, peoples savings....except the Obamas' government is growing along with
    the national debt....!!!!!!

    June 15, 2009 03:41 pm at 3:41 pm |
  20. Proud Member..Party of No

    lolol....what a bunch of clowns this administration is.....Geithner has been saying this for 4 months now. Obama is a total failure.

    June 15, 2009 03:42 pm at 3:42 pm |
  21. Melissa

    lol. What are you people talking about? It IS showing signs of recovery. The market is up by thousands of points since November. So it falls one day during the morning. By close, it could easily be in the positive. You people need to start paying attention.

    The market is kind of like a cork bobbing in water. Its going up and down and up and down but eventually it will settle for a while. Its better than the plunge it was doing between November and April. Thats the way it works.

    Stop complaining.

    June 15, 2009 03:43 pm at 3:43 pm |
  22. Pee Wee

    Everyone busy blaming either Democrats or Republicans fail to see how we got here.

    Why did our steel industry tank?
    Why don't we drill for oil anymore?
    Why haven't we built a nuclear power plant in 30+ years?
    Why do we outsource jobs?
    Why do we import so many jobs?

    Unions and environmental constraints. Simple answer.
    While France has gone on to provide 80% of their electricity with nuclear reactors, we refuse to build additional facilitites. Are the French THAT anti-environment?

    Several other things I could cite but don't have the space!

    June 15, 2009 03:46 pm at 3:46 pm |
  23. Neutralizer

    The spin of TURBO TIM is LAUGHABLE. These people under Obama Administration don't know how to read financial reports. FOREIGN DEMAND FOR US ASSETS FALLS! How's about that Tim? In fact foreign investors are now WORRIED investing in USA because NEW BORROWINGS of this administration is getting BIGGER AND BIGGER. With this kind of borrowing and PRINTING OF MONEY out of style will result to INFLATION (losing value of the dollar) and HIGH INTEREST RATE.

    China and Japan are trimming their holdings of US TREASIURIES. they KNEW our US TREASURIES are WORTHLESS now. You all have Obama and the ENTIRE Democratic Party to thank for!

    YUP! The DEMOCRAPS are SERIOUS in DESTROYING the US economy and the LIBTARDS are serious in helping them do it.

    June 15, 2009 03:49 pm at 3:49 pm |
  24. Carlos

    Geithner you better run along now playschool is over, your mentors Summers and Rubin and the rest of the bilderbergers are calling you.

    June 15, 2009 03:50 pm at 3:50 pm |
  25. Let's be honest!

    What a joke. obama's going to sink the economy, just wait. CNN will provide the smoke and mirrors for obama though.

    June 15, 2009 03:50 pm at 3:50 pm |
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