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.

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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…

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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.

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…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.

Sen. Judd Gregg (R-NH) for Commerce Secretary?

Well since it was Judd Gregg who personally twisted GOP arms to get the travesty that was TARP One through, I am not surprised they are looking to him…..slick move by Team Obama, it would take away one of the 58/59 GOP votes…that would end any hope of a filibuster for the GOP…the  NH Governor is a Dem, oh noes not ANOTHER Senatorial appointment saga!!!

Here is Judd Gregg supporting H1B Visas to replace American workers (disclaimer-like we at MiM in software engineering)…how does this fit into the American Middle Class Task Force I wonder, I will post a comment for Joe Biden on his newest website, lol…

This would certainly be a fit with the open immigration approach…these are HIGHLY SKILLED ADVANCE DEGREE jobs these H1B visa workers take. Jobs that Americans worked hard to pay for school to obtain..and frankly the workers come in and work for less than HALF of what Americans earn..and see our post on Satyam Computers of India who forged all their earnings for how well that goes for American business..yeah I am totally biased on this issue…

I was hoping one of the Sanchez sisters would get it….

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January 30, 2009. Tags: , , , , , , , , , , , , . Cabinet, CITI, citigroup, Economy, FDIC, Finance, Labor Department, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 1 comment.

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