China sounding skeptical about GM

Scott Tong Jun 1, 2009
HTML EMBED:
COPY

China sounding skeptical about GM

Scott Tong Jun 1, 2009
HTML EMBED:
COPY

TEXT OF STORY

Steve Chiotakis: Treasury Secretary Tim Geithner already talked a little about it today in China. Geithner says the takeover. From Shanghai, Marketplace’s Scott Tong has that.


Scott Tong: Geithner told a crowd at Peking University the U.S. government is just a temporary caretaker for General Motors. He said he expects GM to emerge quickly from bankruptcy stronger, and eventually move on without government assistance.

Timothy Geithner: Our objective is to make sure we’re limiting our involvement, the minimum necessary, and that we get out of that involvement as quickly as we can.

Since that involvement means the government putting another $30 billion into GM, the upshot is more borrowing and a bigger and shakier budget deficit.

Which doesn’t sit well with China. It’s invested a trillion dollars in U.S. bonds and wants assurances they’re secure. In Beijing today, Geithner said Chinese financial assets in the U.S. are “very safe.” At which point some members of the audience reportedly laughed.

In Shanghai, I’m Scott Tong for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.