Man On The Street: Atif Siddiqui of Washington, D.C. says he doesn’t think the DOW will stay above 10,000 for a while, but that he thinks it will dip down a little bit. Siddiqui says that the recovery is happening, but slowly. (0:11)
Treasury Secretary Timothy Geithner explains what the current administration is doing to get the economy back on track. (0:37)
By Courtney Ann Jackson-Talk Radio News Service
We can’t let things go back to the way they were with the United States Financial System according to Treasury Secretary Timothy Geithner Monday. Geithner joined Newsweek Magazine editor, Jon Meacham, at a luncheon interview on the topic of the recession and what American’s should expect as the steps to recovery continue to be put into action.
“This is still the most challenging economic crisis that this country has seen in generations. It took a long time for these problems to build up,” Geithner said. “It’s going to take time for us to work through them. We’re not going to have a steady, even process of repair, it’s going to be bumpy, still feel fragile for a while.”
Geithner expressed his sympathy for struggling Americans and said he understands why Americans are angry. He said that even as growth inevitably begins to turn positive, unemployment will continue to increase for awhile. He also said, “It’s not going to feel better for a long time for millions of Americans.”
As the administration continues to work its way through this economic crisis, Geithner believes they need to take a “fresh look” at the financial system as a whole. In terms of speed and quality of initiative that are already in progress, he said he thinks the administration is doing well.
“The American people want to see us moving to change things, not just waiting and hoping,” he said.
Meacham asked Geithner about people’s critique that the administration was being too lenient. Geither replied, “I actually think that what the President has put in place is the most aggressive approach to solving a financial crisis than we’ve seen from any serious country in a very long period of time.”
He also noted that they are doing more preventative work and referred to it as a type of insurance from a greater recession. They are working to make the system more stable and plan to release a new set of proposals in the next few weeks for reforming the oversight framework.
By Courtney Ann Jackson-Talk Radio News Service
Treasury Secretary Timothy Geithner speaks at the luncheon hosted by Newsweek Monday focused on “Recession and Recovery: The Road Ahead.” Geithner understands where the frustration with the crisis is coming from and lays out the way in which the administration is dealing with it. (1:29)
By Courtney Ann Jackson-Talk Radio News Service
The Recovery Act is doing just as its name promised, according a press conference Wednesday from the office of Vice President Joe Biden. Biden released his first of a series of quarterly reports to President Barack Obama Wednesday morning.
In an on background conference call, a senior administration official from the Vice President’s Office said the American Recovery and Reinvestment Act has shown “early progress providing immediate financial relief for American families.”
The recession has been broad-based, causing unemployment to rise across the country. However, the Recovery Act has been responsible for creation of 150,000 new jobs so far, across all 50 states, including those in areas where it is most needed. “There are programs targeted to specific high unemployment
areas,” the official said.
The report discussions on state fiscal stabilization funds highlights Wisconsin’s application. It is is a good example of how states are “ramping up,” according to the official.
“The report find the anticipated funds are already having an effect on economic and job growth as private sector companies step up to meet expected demand for their projects under the act and state governments adjust their spending plans and they expect to received additional funds,” the
official said.
By Courtney Ann Jackson-Talk Radio News Service
A senior administration official from Vice President Biden’s office discusses how the recession has been broad-based. The Recovery Act’s programs are helping areas that have higher unemployment rates. (0:50)
by Christina Lovato, University of New Mexico-Talk Radio News Service
The campaign to Rebuild and Renew America Now!, a coalition of 116 national and over 700 state and local progressive, labor and advocacy organizations working together to pass the President’s budget held a press conference this afternoon and said they are confident that Congress will do what is best for the American people, and that is to pass it. Alan Charney, the Program Director for US Action said that the budget is “transformative,” and said that it will set the U.S. on a road to long term recovery. (00:41)
Jonathan Bronstein, Talk Radio News Service
Since the economic crisis began in 2008, many people have been clinging to the hope of hearing positive news regarding to the economy. Recently, Dominique Strauss-Kahn, the current chairman of the International Monetary Fund (IMF), delivered some optimistic news, as he believes that 2010 could be end of recession.
“The free-fall in the global economy is beginning to abate,” said Strauss-Kahn in an optimistic tone.
But Strauss-Kahn believes that the governments must take three steps in order to bring this current recession to a close.
Firstly, financial sector reform, as “it is essential there is no way in the global economy without this,” said Strauss-Kahn. Governments must work to cleanse the banks balance sheets and attempt to re-capitalize the banks in order to prevent “zombie banks,” banks that keep “toxic” assets on their bank sheets, from taking hold and keeping nations in a prolonged recession.
Secondly, the need for a global and coordinated fiscal stimulus, and the IMF asked for a 2 percent global stimulus, and “I must say that globally the government delivered at the global level,” said Strauss-Kahn, who continued to say, “and for 2009 we [the world] has what it needs.” Not only was Strauss-Kahn pleased that the world heeded the warnings of the IMF, but also implemented them at a similar time, which marked a more unified response.
Thirdly, Strauss-Kahn wanted urgent action taken by the national governments on the financial front in order to keep the banks solvent, and to alleviate any pressure in emerging markets. “This is the area where the G-20 was boldest in tripling the resources of the IMF, its lending capacity, to an unprecedented $750 billion,” said Strauss-Kahn.
However, Strauss-Kahn had sobering news regarding the present, as he believes that no matter how much stimulus is placed into the economy this year, 2009 will be seen by future generations as a lost year of economic growth.
“2009 will almost certainly be an awful year; we expect global growth to enter deeply negative territory,” said Dominique Strauss-Kahn, the current chairman of the International Monetary Fund.
While 2009 may be a bleak year; one must not overlook the positive indicators in the economy, like the NASDAQ recently reaching its 5-month high, which illustrate the resilience and strength of the economy.
Strauss-Kahn continued to outline the 4 desires of the IMF in order to prevent another economic crisis, they are: better regulation of financial markets, civilian watchdogs on the “corner between main street and Wall Street,” international cooperation and financial arrangements between nations in economic troubles and the IMF so the stipulations that accompany the loan are not too stringent.
“In future time people do believe the United States economy will get better and is most secure,” said Strauss-Kahn, and for this reason the dollar will continue to be seen as the last bastion of security, even during the most tumultuous times.
In fact, the dollar has continued to appreciate against competing currencies, like the Euro and Yen, even during this crisis, which according to Strauss-Kahn illustrates how at the end of this recession, “the dollar will still be supreme.”
Strauss-Kahn concluded by harkening back to his prediction that the crisis would ease in 2010, when he said “it is time to move forward and if we do move forward in the correct way than the recovery of the global economy in the first-half of 2010 will be a correct forecast.”
Senator John McCain (R-Ariz) spoke during the Senate debate today, to discuss the compromised version of the stimulus package.
McCain said: “I don’t believe things are going to get better in the
world real soon.”
“We need to sit down together before the bill is written, outline the
principles, turn those principles that we share into concrete
legislation and work together, and I hope we never again have a
repetition of a bill of such enormous consequence that would pass
through both bodies with literally no Republican support.”
McCain added: “Three Senators out of 178 [Republicans] in the House and 40 here in the United States Senate. That’s not bi-partisanship.”
“I hope the American people respond again by sending us the message,
they want us to address the economic woes we face, and they want us to
address them together. This legislation, in my view, is very, very bad
for the economic future of America,” McCain concluded.
Senator John McCain (R-Ariz), made a speech on the Senate floor, today, on the compromised version of the stimulus package. In his statement he said: “This legislation, in my view, is very, very bad for the economic future of America.”
