Commercial Real Estate Is Totally Cool, Says Timmy
U.S. Treasury Secretary Timothy Geithner said commercial real estate woes won’t set off a new banking crisis, in remarks to the Economic Club of Chicago.
“I don’t think so,” Geithner said, when asked whether commercial real estate could set off another banking meltdown. “That’s a problem the economy can manage through even though it’s going to be still exceptionally difficult.”
The global economy has accelerated since the worst of the recession and banking crisis last year, Geithner said, noting a U.S. Commerce Department report today showing the economy expanded 3.5 percent in the third quarter.
“You can say now with confidence that the financial system is stable, the economy is stabilized,” Geithner said. “You can see the first signs of growth here and around the world.”
Going forward, the U.S. economy will need to be sustained with private demand without relying on government support, he said. In the meantime, he said, the existing bank rescue and fiscal stimulus programs will help the rebound gain momentum.
“This is going to have to come from private demand, private investment, for it to work and be sustained over time,” Geithner said.
The U.S. needs to bring its budget deficits down “dramatically” because they are too high in the medium term and “unsustainable” in the long run, Geithner said. Investors need confidence that the U.S. that is “going to have the will to do that as the economy recovers,” he said.
"Going forward, the U.S. economy will need to be sustained with private demand without relying on government support, he said. In the meantime, he said, the existing bank rescue and fiscal stimulus programs will help the rebound gain momentum."
Going forward when? Can we have a date please? How about Halloween? April Fools Day? December 21st, 2012? Give me a date or I don't buy it.