Tim Geithner With Charlie Rose -- On China, Currency Wars, The Moratorium & The Economy (Video & Transcript)
Video: Tim Geithner with Charlie Rose -- Oct. 12, 2010
This is a 6-minute summary clip covering some of the highlights. At the bottom of the story is a different 6-minute clip that focuses exclusively on China. You can also read the complete transcript or watch all 53 minutes at this link:
---
The White House does not support a continued foreclosure moratorium:
---
Partial Transcript: Charlie Rose Interview
Tell me where the global economy is right now and what you expect to happen next.
The world's now healing. And it's growing. The IMF expects the world as a whole to expand at a rate of a little over 4 percent next year, which is not amazing but much better than we would have thought possible. But that overall number hides huge difference across regions. China, India, Brazil, emerging markets in Asia, Latin America, Eastern Europe, they've got a long period of very rapid growth ahead of them. In Europe and Japan, growth is much weaker. In the U.S., the picture is mixed. Most economists think we're growing at a rate of about 2 percent. But the private forecasters say they expect the economy to strengthen gradually into 2011 and grow at about 3 percent. That's not fast enough for us. We want it to be faster.
We are, in my judgment, a substantial way through the process of healing, of fixing the things that were broken. The financial sector is much less leveraged, we've had a traumatic, huge adjustment in house prices across the country, and private savings rates have already increased quite significantly. Those things are really important for future growth, and they're encouraging. But they do mean that we're not growing as fast as we'd like, and I think Washington's got more work to do to try to provide some support for the economy.
Should there be a national moratorium on foreclosures?
What you're seeing in housing is a national tragedy, still very, very difficult. A lot of people were taken advantage of, and a lot of people were too optimistic about what they could afford. Now you've seen some banks suspend the foreclosure process so they can make sure that they're not causing any injustice to borrowers, and that's very important. But a national moratorium would be very damaging to exactly the kind of people we're trying to protect. We want to make sure we're holding [lenders] accountable. But we also want to make sure that we're not going to make the problem worse.
Tell us about unemployment and why it's at 9.6 percent and why those numbers aren't going down.
Unemployment at 10 percent is still overwhelmingly a reflection of how serious the crisis was, how deep the damage was from this financial panic. And it is going to take time for that to come down. The most important reason why it's so high is because the economy is not growing rapidly enough to provide new opportunities.
Why aren't Americans investing in new factories, in hiring?
Well, they're still scarred by the crisis. They're still a little tentative and cautious. So while they're investing a lot—private investment by American companies grew by an annual rate of more than 20 percent in the first half of the year—you're still seeing businesses waiting to see how strong is growth going to be, and that's the fundamental factor holding back investment and hiring.
So what can you do to reassure them and try to create confidence?
The President, in September, proposed three very important things. First, he proposed a substantial program of investment in public infrastructure. He also proposed two very smart incentives for private investment. One is to make permanent a very generous tax credit for firms that conduct research and development in the U.S. He also proposed, for a one-year period, 100 percent expensing of new capital investments.
If you read the newspapers over the last three months, the impression you have is that all that Tim Geithner does is try to get the Chinese to let their currency appreciate. Where is that today?
China, over the last six weeks or so, has started to let its currency appreciate at a pretty significant rate—about 2 or 2.5 percent. But this is going to be a gradual process. What matters to us is that they continue to let their currency rise. And what we want to do is to maximize the incentives they have to let that process go as far as it needs to go.
What about all this talk of a coming currency war?
No risk of that.
No risk?
There's a lot of capital flowing to [other countries] because they're letting their currencies move. And they're having to work very hard to make sure they're not at an unfair disadvantage with China....We want China to play by the rules of the game everybody else plays by.
Are they?
Well...we'd like them to do more.
#
Video: Different summary clip
Related links are in comments below, as they are for all our stories. You should always read 'comments' for the latest links.
---
A trip back in time:
---
Screnshots
Video: Tim Geithner with Charlie Rose -- Oct. 12, 2010
This is a 6-minute summary clip covering some of the highlights. At the bottom of the story is a different 6-minute clip that focuses exclusively on China. Transcript and links are inside. I had to use this screenshot. Geithner looks high as pie, no?
Oct 14, 2010 at 10:58 PM
Reader Comments (22)
http://news.yahoo.com/s/afp/20101013/ts_afp/usworldeconomyforex
One Man's HAMP HELL: 'Just Wait This Thing Out'
By SIMON JOHNSON
http://economix.blogs.nytimes.com/2010/10/14/in-the-u-s-no-true-fiscal-conservatives/
Short...read this one...
Insiders Ignored Foreclosure Crisis Signals For Years
Another good one...
http://www.huffingtonpost.com/2010/10/14/foreclosure-moratorium-home-prices_n_762800.html
More good info...quotes Dean Baker...
I spoke with a foreclosure fraud attorney today who explained it to me like this...there are mistakes with essentially ALL paperwork...none of the transfer chains for any home is perfect...what these anti foreclosure lawyers are REALLY trying to do for their clients is to get the bank to offer a LOAN MOD of substance....they threaten to sue over faulty documents voiding the purchase altogether in an effort to get the bank to offer something worthwhile...
Treasury and Obama are facing huge financial pressure.
http://www.alternet.org/economy/148495/why_is_the_white_house_against_freezing_foreclosures_in_the_face_of_rampant_fraud/?page=entire
Nomi Prins...
http://www.youtube.com/watch?v=tAdRtjVmn14&feature=player_embedded
http://www.youtube.com/watch?v=uLJV4vDAo6A
Once he got there, it wasn't fun anymore.
Yes, that is true but he does like all the free shit and toys.
http://www.youtube.com/watch?v=3w5YerKaJRY
http://www.youtube.com/watch?v=chlXQYJYU88
V O O D O O...I love it!!!
Maybe it is the Billary Clinton voodoo Michelle is worried about...
http://www.youtube.com/watch?v=JahdnOQ9XCA
Bad Democrat, I am sure glad no Republicans would ever think of trashing the blessed Constitution.
http://www.scn.org/ccapa/pa-vs-const.html
http://www.newswithviews.com/your_govt/your_government46.htm
http://www.wcl.american.edu/journal/lawrev/51/correctedaden.pdf?rd=1
http://www.ratical.org/ratville/CAH/HSA_RoAPS.pdf
The video screen captures on your site are just terrific.
cheyenne thanks...it's one of the fun parts of doing a video clip -- looking to see if there are any good capture moments from a screenshot...i think i did ok with this geithner capture...;-)
If it were only about Sarah Palin or Bush or if it were said by Jon Leibowitz or Ratigan, it would be pure gold.
If it were only about Sarah Palin or Bush or if it were said by Jon Leibowitz or Ratigan, it would be pure gold.
They’re both the same.
They’re both the same.
They’re both the same.
They’re both the same.
If I say it enough times, I will believe it.
The shortfall totaled $1.294 trillion in the fiscal year ended Sept. 30, second only to the $1.416 trillion deficit in 2009, the Treasury Department said today in Washington.
http://www.bloomberg.com/news/2010-10-15/u-s-posts-second-straight-annual-budget-deficit-in-excess-of-1-trillion.html
Obama, Rice huddle on arms treaty, other issues
WASHINGTON – President Barack Obama is meeting with former Secretary of State Condoleezza Rice to talk about a pending arms treaty with Russia and other issues .
http://news.yahoo.com/s/ap/20101015/ap_on_re_us/us_obama_rice
We like Condi, right DB???
We won't even go into criminal behaviors of members of both parties over the years.