Thursday, July 16, 2009
Treasury Secretary Timothy Geithner says he's seeing "durable, very important signs" of recovery in the financial system. At the same time, he's warning against repeating the mistakes of the 1930s and withdrawing stimulus too soon.
Geithner was in Paris on the last leg of a tour that has taken him from London to Saudi Arabia and the United Arab Emirates. He is lobbying foreign governments not to slacken in their efforts to aid the global economy.
Decisions to tighten monetary policy and control government spending in 1937 under U.S. President Franklin Roosevelt are widely believed to have helped snuff out a recovery in the midst of the Great Depression that followed the 1929 stock market crash.
Positive signs cited by Geithner include new capital coming into the U.S. financial system, the improvement in credit markets, and the beginnings of improvement in consumer and business confidence.