Geithner: “Fiscal Policy is about to Get Very Aggressive…”

That quote sounds pretty intense for a Treasury Secretary :0) , from the WSJ, stocks are rallying off the news, to the tune of a DOW now up 150…

With its new plan, the administration is “going to do our best” to apply the Japanese lesson, Mr. Geithner said. “Certainly monetary policy has been very aggressive, and fiscal policy is about to get very aggressive.”

Still, he noted, pain is inevitable. “Japan had a huge bubble beforehand,” he said. “And it was going to be a wrenching, protracted adjustment process no matter what.”

Mr. Geithner is expected to lay out the framework of the administration’s approach for addressing the crisis early next week. His speech is likely to run the waterfront, from a revamped bank bailout, to a foreclosure-prevention plan to a redo of the financial regulatory system. Coupled with the stimulus package, the Obama administration is set to commit trillions of taxpayer dollars to jumpstarting the economy.

Geithner is to come forward next week with the plan to repair our faltering financial system, see yesterday’s Call of the Wild -CNBC video here

Jamie Dimon doesn’t sound too excited about the new tough love the Administration has been showing Wall St (who can blame him, JPM was FORCED to take TARP One):

Chairman and Chief Executive Jamie Dimon thinks outrage over bonuses being paid to executives of firms involved in the financial crisis and now receiving federal assistance is not entirely justified.

In his keynote speech to the “Future Of New York” conference sponsored by Crain’s New York, Dimon said some bank compensation has indeed been exorbitant, but President Obama should not paint all banks with the same brush when it comes to bonuses and the way they have been paid out.


Although he suggested the president should not be pointing a finger at the financial community, Dimon said he has great faith in Obama and acknowledged that banks are to blame for the crisis, with too much leverage, too many products, and bad underwriting…


TRADE: Geithner also tried to make nice with China, whom he called a currency mainulator during his confirmation hearings:

CNBC: U.S. Treasury Secretary Timothy Geithner held talks with Chinese Vice Premier Wang Qishan by telephone late on Monday and agreed to consult closely on the troubled global economy, the Treasury said on Tuesday. “Both officials emphasized the need to maintain close consultations during this difficult period for the global economy and agreed on the need for a continued high-level dialogue on bilateral economic issues,” Treasury said.


…relations with China are particularly sensitive, especially since President Barack Obama charged during the presidential campaign that Beijing manipulates its currency’s value. Geithner also reiterated that view during his Senate confirmation hearing, causing unhappiness in Beijing.

On Protectionism:

Canada, which sends the bulk of its exports to U.S. markets, is specially sensitive over proposals from American industry groups and some lawmakers to promote a “buy America” stance in any economic stimulus programs. Obama is due to travel to the Canadian capital, Ottawa, later this month on his first foreign trip as president.

February 3, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , . Cabinet, CITI, citigroup, Economy, FDIC, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

VP Biden on China and Trade Policy….

Oh Noes!!! Biden was alone with a reporter and they talked about currency, trade and China, oh dear Gawd!!

Smoot-Hawley is already raising its protectionist head in the stimulus and now Joe is talking to our banker..good grief…

Read an EXCELLENT post on the Great Depression and Smoot-Hawley by Anthony Edwards at The Filter, their chart on the drop in global trade below:


Highlights from Reuters by way of interview with NBC reporter John Harwood:

The United States will insist China play by international trade rules, but will not move unilaterally to keep out China’s exports, Vice President Joe Biden said on Thursday.

“The policy of this administration is to say to China — which occasionally the last administration was reluctant to do — ‘you’re a major player on the world scene economically and you’ve got to play by the rules that everybody else plays by,'” Biden said in an interview on CNBC.


So we’re going to be, in that sense, blunter with the Chinese about ‘you’re in the deal, you play by the rules,'” Biden said.

Oh good! BIDEN is going to be MORE BLUNT with our largest trading partner and the buyer and holder of all our debtr, which incidentally we are printing like it’s going out of style to send out all these stimulus funds…I feel nauseous…

U.S. Treasury Secretary Timothy Geithner angered China last week when he told senators at his confirmation hearing that China was manipulating its currency.

So what’s happening back at the ranch while Biden is talking about China..

President Barack Obama is expected to contact his Chinese counterpart soon and assure Beijing that Washington is not seeking a “currency war” a lawmaker closely involved in U.S.-China issues said on Thursday.

Representative Mark Kirk, co-chair of the U.S.-China Working Group, said he and others in the bipartisan congressional group were told by administration officials that “the president will undercut the anti-currency message pretty directly.”

“My understanding is today or tomorrow there will be an Obama call to Hu Jintao in which the talking points are basically that the president will commit that we are likely not to have a currency war,” the Illinois Republican said.


BUT- ” The White House declined to comment.” Apparently they forgot to tell Joe…

Have they read the State Dept. Diplomatic History on this??

In the decade after the end of the First World War, the United States continued to embrace the high tariffs that had characterized its trade policy since the Civil War. These were enacted, in part, to appease domestic constituencies, but ultimately they served to hinder international economic cooperation and trade in the late 1920s and early 1930s.

Message to Joe, to quote T’Pau, (and really have been waiting to do so since the 80s, HA! ): ‘don’t push too far, your dreams are china in your hand’ and he is a bull in the shop dudes…


January 29, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Entertainment, Finance, Music, Obama Administration, Politics, Wall St. 4 comments.

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