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interestrateripoff

Geithner To Reduce Government Role In Markets

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http://business.timesonline.co.uk/tol/busi...icle6829765.ece

The US Treasury Secretary said that America had moved “back from the brink" of a worsening recession, allowing the Government to start scaling back some of its multi-billion dollar support for the financial system.

"We are now in a position to evolve our strategy as we move from crisis response to recovery, from rescuing the economy to repairing and rebuilding the foundation for future growth," Timothy Geithner said in testimony to the Congressional Oversight Panel, which monitors the $700 billion Troubled Asset Relief Program (Tarp).

The Tarp spent about $230 billion on stakes in US banks in 2008 and early this year to prevent Wall Street’s collapse. More than $70 billion of that investment has since been.

Mr Geithner said he expected $50 billion in additional repayments over the next 12 to 18 months.

He said that the Government had also removed a $750 billion financial stability contingency fund in its budget.

A $50 billion guarantee programme provided by the Government for the money market mutual fund sector will end this month.

Mr Geithner warned, however, that the country’s economic recovery would be gradual.

"We can plan to reduce the Government’s direct involvement in the financial system but we must move cautiously or risk a relapse," the Treasury said in a briefing document that accompanied Mr Geithner’s testimony.

Signs of green shoots in the economy continued today. White House economists said that America’s $787 economic stimulus had saved or created more than one million jobs.

Meanwhile, the Labor Department said that new claims for unemployment benefits had fallen to 550,000 from 576,000. The number of people continuing to receive benefits fell by 159,000 to nearly 6.1 million, the lowest level since early April.

On Wednesday the Federal Reserve reported that 11 of its 12 regional banks had found that the economy was stabilising.

Wow thank god there aren't the option arm resets etc... It's all fixed the recovery will solve everything, the govt can put away it's cheque all is saved.

Now if they are withdrawing support just why the hell do they need to keep borrowing money and sending the deficit into the trillions? Something doesn't appear to add up with this.

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I've come to the conclusion that these people are, in fact, insane.

They've done nothing. Zilch.

The situation now is exactly the same as it was two years ago. None of the underlying problems have been addressed and these loonies seem to think that re-introducing mark-to-whateveryoulike and dumping a shed load of cash onto the market has somehow fixed everything.

We can only wait for the crash now. When it comes I feel it will be sudden and quite spectacular.

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Yep, certainly a recovery ...

U.S. Foreclosure Filings Top 300,000 for Sixth Straight Month

By Daniel Taub

Sept. 10 (Bloomberg) — Foreclosure filings in the U.S. exceeded 300,000 for the sixth straight month as job losses that boosted the unemployment rate to a 26-year high left many homeowners unable to keep up with their mortgage payments.

http://www.bloomberg.com/apps/news?pid=206...id=a3dnPxhcGAxs

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http://www.bloomberg.com/apps/news?pid=206...id=ap2p5FsS5Cbc

U.S. stocks gained for a fifth day, the longest streak for the Standard & Poor’s 500 Index since November, as rising forecasts for oil demand boosted energy shares and jobless claims slid to the lowest level since July.

Chevron Corp. and Schlumberger Ltd. advanced as the International Energy Agency said Chinese consumption and stronger-than-estimated oil use in the U.S. will boost demand. AT&T Inc. led telephone shares higher after a research firm said Apple Inc. may keep the company as exclusive carrier for the iPhone in the U.S. Procter & Gamble Co. rallied 4.2 percent on a profit forecast that topped estimates, while Yahoo! Inc jumped 5.2 percent as Bank of America Corp. recommended the shares.

The S&P 500 advanced above its highest close since Oct. 6 after weekly jobless claims decreased by 26,000 to 550,000, lower than economists forecast. The VIX, the benchmark index for U.S. stock options, fell to its lowest intraday level in a year as investors paid less to use the contracts for protection against declines in stocks.

“The jobs number was another confirmation that the economy may have reached the bottom,†said Wasif Latif, who helps oversee $90 billion at USAA Investment Management Co. in San Antonio.

The S&P 500 added 0.8 percent to 1,042.03 at 2:55 p.m. in New York. The Dow Jones Industrial Average increased 65.22 points, or 0.7 percent, to 9,612.44. Europe’s benchmark index rose 0.2 percent while Asia’s jumped 1.4 percent. Treasuries rallied, sending the 10-year note’s yield down 13 basis points to 3.45 percent, following stronger-than-forecast demand at a $12 billion auction of 30-year bonds.

However on the positive side stocks are up again.

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http://www.nytimes.com/2009/09/11/business...ml?ref=business

One of President Obama’s top economic strategists said on Thursday that the government was now starting to shrink many parts of the gigantic financial bailout that followed the collapse of Lehman Brothers last September.

“We must begin winding down some of the extraordinary support we put in place for the financial system,†said the Treasury secretary, Timothy F. Geithner, in written testimony prepared for the Congressional Oversight Panel on the Treasury’s $700 billion rescue program.

Citing evidence of increased strength through much of the financial system, and signs that the recession is ending, Mr. Geithner said the government was already scaling back many of the government’s special loan and guarantee programs.

Treasury officials, in a separate briefing with reporters, said they expected banks and other financial institutions to repay an additional $50 billion to the government, on top of $70 billion that has already been repaid, over the next 12 to 18 months.

“The consensus among private forecasters is that our economy is now growing; the financial system is showing signs of repair; and the cost of credit has fallen dramatically,†Mr. Geithner said. “It is clear we have stepped back from the brink.â€

The Treasury’s $700 billion Troubled Asset Relief Program, or TARP, is the most visible piece of a much broader array of emergency measures that the Obama administration and the Federal Reserve have used to prop up the economy after it fell into the deepest downturn since the Great Depression.

The Treasury has invested $239 billion in banks since the program was created one year ago. It has also invested about $80 billion in rescue efforts for General Motors, Chrysler and automobile suppliers and more than $80 billion in Fannie Mae and Freddie Mac, the mortgage-finance giants. The program has also contributed tens of billions of dollars to the Treasury and Federal Reserve’s joint bailout of the American International Group, the failed insurance conglomerate. The Treasury program is being used to subsidize loan modifications for troubled homeowners and it will soon start to subsidize the purchase of toxic assets held by banks.

Treasury officials acknowledged on Thursday that many of those efforts would be in place for a long time to come, but they said a host of special loan programs were either coming to an end or were turning out to be smaller than originally expected because private capital markets had improved so much since the start of the year.

Despite Mr. Geithner’s upbeat message, the Congressional Oversight Panel has issued a string of reports cautioning that many big problems remained.

In a report on Wednesday, the oversight panel predicted that the government would lose a substantial portion of its investment in General Motors and Chrysler. In a previous report, the panel warned that many banks have yet to sell off or write down hundreds of billions of dollars worth of troubled residential and commercial real estate mortgages.

The are going for it trying to ramp up confidence.

Edited by interestrateripoff

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Breakfast bump.
about the banks buying up foreclosed housing in the US made me throw up in my mouth yesterday. They are doing it all again. Interesting that the end mugs/buyers of the properties are city workers. It's insane.

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since when have a few banks, which they rescued, been the economy.

watched a bit of the Lehman thing last night, and it struck me that all the bankers and their lawyers repeated time and again that THEY were the the economy....having it crash would end it all.....then the last minute call to the president to receive the "argument" that letting Lehman fail would bring them all down.

It didnt. no way it would. It was an empty threat. Governments around the world fell for it....as was the bankers plan.

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about the banks buying up foreclosed housing in the US made me throw up in my mouth yesterday. They are doing it all again. Interesting that the end mugs/buyers of the properties are city workers. It's insane.

No doubt much the same is happening here.

The government / central bank / bank cartel is painting the tape with taxpayer money. Tarp - slush fund for insiders to play with.

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about the banks buying up foreclosed housing in the US made me throw up in my mouth yesterday. They are doing it all again. Interesting that the end mugs/buyers of the properties are city workers. It's insane.

crazy mixed up man...calls the housing market a hyperinflationery boom...yet one case he cites was a bank sale refused 180K and two month later accepted 160K

and foreigners buying......Canadians.....

is the US heading for empty holiday towns?

and all these city workers....buying up bargains....for what purpose? if they are moving, they have a place to sell, if its for holiday, back to line3!.

Yes, I beleive bankers are buying their own turds....I think they are doing it here too...makes no sense unless you are desperate.

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crazy mixed up man...calls the housing market a hyperinflationery boom...yet one case he cites was a bank sale refused 180K and two month later accepted 160K

and foreigners buying......Canadians.....

is the US heading for empty holiday towns?

and all these city workers....buying up bargains....for what purpose? if they are moving, they have a place to sell, if its for holiday, back to line3!.

Yes, I beleive bankers are buying their own turds....I think they are doing it here too...makes no sense unless you are desperate.

That's what I like about him - he is just trying to make sense of it. I got dizzy thinking about it yeterday, it is all so... unreal. More empty houses, more bad loans, more foreclosure. To what end? It was the first time that I really thought that there will be a civil war in the states, the people vs ??? Then I don't know. Who do you fight?

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