Economic rescue will wind down
Share Now on:
TEXT OF STORY
Steve Chiotakis: President Barack Obama will reinforce the administration’s predictions of economic recovery in a speech on Wall Street Monday. That’s the one-year anniversary of the collapse of the Lehman Brothers investment bank. Marketplace’s Washington Bureau Chief John Dimsdale has more.
John Dimsdale: President Obama will tell Wall Street it’s time for the government to start winding down its rescue efforts. That will echo the message from Treasury Secretary Timothy Geithner yesterday. He told congressional watchdogs the stronger economy means banks no longer need injections of taxpayer money.
Timothy Geithner: We are now in a position to try and adjust our strategy. Moving from crisis response, from the emergency response to recovery, from rescuing the economy to repairing and rebuilding the financial system to repairing and rebuilding the foundations for future growth.
Geithner expects banks will be able to repay about half the money taxpayers have lent them within the next 12 to 18 months. But Geithner also warned historically, financial rescues have ended too early. He said the government will continue to buy toxic assets held by banks.
In Washington, I’m John Dimsdale 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.