Geithner on George Stephanopoulos

Posted on March 29, 2009

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Watching the George Stephanopoulos show this morning (I’m not sure why, but….), but here are some notes from the interview:

  • “People with ideas still want to come to the United States.”
  • “We need banks to take risk again – take a chance again on providing credit to that business…”
  • After Stephanopoulos introduced Paul Krugman’s comments that the Geithner plan is financial hocus pocus – “This is a conservative structure to have the private investor with the government sharing the risk.”
  • Stephanopoulos asked how much is left in TARP? – “$135 billion in uncommitted, including money coming back from banks that are stronger than thought and are not in need to the money originally allocated to them.”
  • On inflation that could be caused by printing money to finance the federal actions – “We’ll never have hyperinflation. Increased money supply will not cause hyperinflation.”
  • Government has historically taken too long to assist in recovery, and pulled out of recovery mode too soon as soon as a glimmer of light was seen – Japan and Sweden in the 1990s, the United States Savings & Loans crisis, and the Great Depression.
  • “Right now, we’re about where we thought we’d be.”
  • “Damage from this situation is brutal, indiscriminate.”
  • “The market will not solve this. The error is not doing enough.”

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Posted in: economics, finance