Geithner, Summers, Bair on Wall Street[Treasury Sec Geithner “We’ve got Unsustainable Deficits"]

FOXNEWS.com ^ | October 16, 2009 | Elizabeth MacDonald

[Son House]

In unprepared remarks given at a Wall Street conference hosted by The Economist magazine yesterday, Treasury Secretary Timothy Geithner delivered this eye-brow-raising comment: “We’ve got unsustainable deficits over a five- to 10-year window.”

Economists have also projected this outsized deficit spending—a $3.6 tn budget, a $787 bn stimulus plan, and health reform veering towards $1 tn over a period of years--is putting the country on track to join Zimbabwe, Italy, and Japan when it comes to rising debt-to-GDP ratios.

Geithner also said the US economy is slowly recovering, but the markets should not expect a V-shaped recovery, as the healing process will take a bit longer. The US is due for a “slower than typical recovery,” he said.

In unprepared remarks, Geithner also said that “major economies look soft” but that the “emerging world will be a much stronger source of strength, it is showing resurging strength that will support us.”

The US government, however, owns stakes in about 600 banks, two car companies, has effectively nationalized an insurance conglomerate, AIG, and has nationalized housing finance giants Fannie Mae and Freddie Mac, both of which have combined balance sheets veering toward half the GDP of the US, once off balance sheet items are included.

Top economist Stephen Roach, now chairman of Morgan Stanley Asia and a renowned bear, said last night at Buttonwood that “there is no exit strategy” when it comes to the Fed’s quantitative easing programs, later adding “we’re stuck” in a hamster wheel of “bubbles perpetuating bubbles” and that the country needs a central bank that “actively prevents asset bubbles.” With mid-term elections approaching in the US, Roach also fears a populist-fueled trade war with China if unemployment continues to rise.

[Son House]

The Bush Tax Cuts offer a lot for Republicans to display about how to increase the GDP. Democrats Stimulus#2 will offer 'targeted' tax cuts that are too narrow for our economy;

Economic Illiteracy Quiz:

After what legislation was there the largest spike up in the Real GDP?
a. February 17, 2009: American Recovery and Reinvestment Act = 111th United States Congress
b. October 3, 2008 — Emergency Economic Stabilization Act of 2008 = 110th United States Congress
c. February 13, 2008 — Economic Stimulus Act of 2008 = 110th United States Congress
d. May 28, 2003 — Jobs and Growth Tax Relief Reconciliation Act of 2003 = 108th United States Congress

( Ignore the green forecast, it was wishful thinking)


Failure Qualifies any Participants
to be an Economic Advisor to the White House,
or Replace a current sitting Democrat Congressional member
Correct Answer is: d.
Apply Now

[Brilliant]

“Our goal is to sustain them until the GOP returns to power so that when it blows up, we can blame them on the GOP.”

[Son House]

http://www.google.com/hostednews/ap/article/ALeqM5j7EwfM-Cox6IcCwn0AP07SFgFy5QD9BCFGVO0

BIGGEST DEFICITS AS PERCENTAGE OF GDP, SINCE 1940:
10 percent: 2009 deficit
3.2 percent: 2008 deficit
6 percent: 1983 deficit
21.5 percent: 1945 deficit
30.3 percent: 1943 deficit

^
The top 2 are Democrat Majority 110th and 111th United States Congress

[Son House]

http://www.google.com/hostednews/ap/article/ALeqM5j7EwfM-Cox6IcCwn0AP07SFgFy5QD9BCFGVO0

MAKE LESS, SPEND MORE:
$419 billion: Drop in federal taxes and other revenue from 2008 to 2009
$543 billion: Increase in spending from 2008 to 2009
$2.1 trillion: Federal revenue in 2009
$3.5 trillion: Federal spending in 2009

^
Democrat Majority 110th and 111th United States Congress

^
Sensing a Pattern here

[swheats]

Only in America. Men who don’t pay their taxes can be in control of making and enforcing laws.

God help us to get this right.

[GeronL]

Unsustainable government

[Paladin2]

"We’ve got unsustainable deficits over a five- to 10-year window"

A Jf'nK genius. No wonder he was "the only one" who could get the job done.

[Paladin2]

Just wait until he hears from John Galt.

[mojitojoe]

That’s one reason they are desperate to pass a huge health care bill. They begin collecting taxes right away, but nobody gets crap for 3 years. They need money bad. Go Galt and I mean really go GALT!!!

[mojitojoe]

I think they have heard from Galt. Tax revenues are down dramatically and it isn’t all from unemployment.

[Cobra64]

Great chart!

[okie01]

A Jf'nK genius. No wonder he was "the only one" who could get the job done.

We are in a world of hurt.

The question is: Can the nation outlast this administration?

[paul51]

We’ve got unsustainable deficits

Only one thing to do then. Triple them in size every year

[Freddd]

Like the economic Jihad in sept. 2008?

Then Obama quadruples spending, doubles the deficit....and the effects won’t be felt for a decade.

[Truth29]

"That?s one reason they are desperate to pass a huge health care bill. They begin collecting taxes right away, but nobody gets crap for 3 years. They need money bad. Go Galt and I mean really go GALT!!!"

In their desperation for cash, I think that one day they will confiscate 401ks and other retirement funds. They will provide some justification like providing access to a replacement government annuity in the form of IOUs and say that it is to provide security for citizens because of a financial crisis. It will, however, be the state taking by force our assets for the"common good." It is time to move such assets off shore and out of reach of the Obama regime.

[atomicweeder]

Bingo! And that’s way they started changing the rules on Swiss bank accounts as soon as they took office. They know that once they start confiscating, people will take their assets offshore — so they FIRST have to turn off that exit, BEFORE they start confiscating.

[bustinchops]

A college freshman enrolled in Econ 101 would know by mid-semester than these deficits are unsustainable.

Timothy “Golden Boy Tax Cheat” Geithner is just now coming around to this insurmountable fact?

[Son House]

And there are better charts to be made, ‘cept Republicans are waiting for McCain to finish reading Alan Greenspan’s book/sarcasm off

[Son House]

Can the nation outlast this administration?

Yes, as most the 74% to 80% that are still employed are going to have to work extra to eliminate these fiscally ignorant Democrats

[Bob from De]

Unemployment,bank failures,commercial real estate crisis,and Barney Fwank and the boys are STILL pushing low-income loans.
More people over and under 65 filing for Social Security.
Vastly reduced tax revenue on savings.(CD’s,bonds,etc.)
In my case from a high of 5.35% a year ago to 2.0% today.

Naw,nothing to worry about!
It certainly does appear that Congress is after the taxes in the first years of Health Care.