Geithner on Exit Strategies: Too Soon to Declare Victory

As more Banks start paying the TARP funds more people are starting to question how long will the US maintain its Quantitative Easing strategies. Treasury Secretary Timothy Geithner has requested that the TARP program be extended through October 3 of next year to better assure the economy has truly exited the crisis and prevent conditions from worsening.

[mserve id=”US_Treasury_Geithner.jpeg” align=”left” width=”476″ caption=”US Secretary of Treasury Tim Geithner” alt=”US Secretary of Treasury Tim Geithner” title=”US Secretary of Treasury Tim Geithner”]

U.S. Treasury Secretary Timothy Geithner said on Thursday the government had to beware declaring victory too soon after managing to avert complete financial collapse by bailing out the nation’s banks.

“History suggests that exiting too soon from policies designed to contain a financial crisis can significantly prolong an economic downturn,” he told a congressional panel that oversees the Troubled Asset Relief Program or TARP.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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