Posted on 05/13/2009 12:08:56 PM PDT by NormsRevenge
WASHINGTON (AFP) – US Treasury Secretary Timothy Geithner said Wednesday that the financial system "is starting to heal" as a result of massive efforts to rescue banks and steady the housing market.
In a speech to community bankers, Geithner said the adjustment in the financial system has largely been accomplished as a result of government rescue efforts.
"The financial system is starting to heal," he said.
"Concern about systemic risk has diminished. And overall lending conditions have started to improve."
Geithner said this is reflected in easier borrowing conditions for corporate bonds and interbank lending as well as for mortgages, where interest rates dropped to a historic low.
"These are all welcome signs, but the process of financial recovery and repair is going to take time," he said.
Geithner said the system is responding to efforts by the Federal Reserve and Treasury to get more credit flowing and keep rates low, including moves to clean up so-called "toxic assets" that are weighing on banks' ability to lend.
Also important were the "stress tests" conducted on major banks, which he said would "bring greater transparency and new capital into the financial system."
"We have already seen a substantial amount of adjustment in our financial system. Leverage has declined. The more vulnerable parts of the non-bank financial system no longer exist," he said.
(Excerpt) Read more at news.yahoo.com ...
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U.S. Treasury Secretary Timothy Geithner speaks to the annual meeting of the Independent Community Bankers of America in Washington, May 13, 2009. The U.S. financial system has completed a big part of the painful adjustment away from its excessively leveraged state, and lending is starting to improve, Geithner said on Wednesday. REUTERS/Jim Bourg (UNITED STATES POLITICS BUSINESS HEADSHOT)
timmuah’s mouth moved and lies spewed forth.
LLS
Oh my, the messiah did it! It’s all over, we are out of the woods! Oh thank you messiah, we owe you a debt of gratitude from pulling us out of the “worst” economic crisis ever!
Geithner is a liar and a cheat. Who the heck would believe him?
“Hello, I’m little Timmy Geithner, and my folks say everything’s gonna be OK!”
Market is now down 181 points.
Not only is Timmy a gross liar, he is purposely deceiving his audience because he knows that the commerical mortgage crunch has not yet arrived and it will ramp up the bank insolvencies to an unprecedented level. It’s like calling a corpse just starting to rot, ‘body on the mend.’
So-Called?
There are countless mortgages on properties that might actually be worth 1/4 to 1/3 the value of the mortgage. And now commercial property mortgages are starting to follow the failure curve that residential mortgages have been following.
Geither is in over his head, and his Fascist policies will only prolong the agony, no matter how positively he and the MSM try to spin it.
Wait until the healthcare discussion gets started. The fix is in that they ram something thru by August. The ramifications of taxes and debt will shake our foundations worse than anything we’ve seen so far.
Evidenced by today's 180-point downturn on the DJIA
Pardon me while I call BS ... why should I trust the word of an idiot that can’t reliably use TaxCut Software?
“the financial system “is starting to heal””
UH.... NO....
Baltic Dry Index is still at the bottom of the crapper, 732 container ships, including 16 of the world’s 21 “SuperCape” ships are currently parked off Singapore.
Mass layoffs are continuing at the rate of 500,000+ a month.
Home foreclosures are SOARING, and the Commercial Real Estate nightmare is just beginning.
Dems spent the last 8 years talking down, and doing EVERYTHING THEY COULD to destroy the economy, so they could get elected. Now they are desperately trying to talk it back up, by trying to get the media to ignore all the bad economic news with empty plattitudes like this.
Lotsa luck with that.
The only people dumb enough to believe that are dumber than him.
When the next round of ARMS and commercial loan balloons start to hit late this year the banks will be a calling and timmy will be saying “shoulda guessed it.”.
Better put some ice on that"
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