Treasury Secretary Geithner: Hard times for some time to come. Is he right?
FROM CNN's Jack Cafferty:
The secretary of the Treasury has an ominous warning for the American people: It's going to take awhile for this economic recovery to feel like a recovery, and for a lot of people, it's going to be "harder than anything they've experienced in their lifetime - for some time to come."
[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2011/images/07/11/art.geithner.jpg caption="Treasury Secretary Timothy Geithner."]
Timothy Geithner made those comments Sunday on NBC's "Meet the Press," in the wake of an outright ugly jobs report for June. The U.S. economy added just 18,000 jobs last month - just dismal - and the unemployment rate went up to 9.2%.
Not very encouraging, especially if you're one of the more than 14 million Americans who are jobless in this country right now. Millions of jobs don't exist here anymore. They've been shipped overseas where labor costs are much less, meaning corporate profits are much higher. But what about the country?
There are 4.6 unemployed Americans for every job opening out there, according to the Labor Department. In some states, it's much worse. In Arizona, for example, there are 10 job seekers for every opening.
What's more, nearly 20% of personal income in the United States is now provided by the government - in the form of jobless benefits, Social Security, food stamps and other programs.
The Great Recession officially ended in June 2009, but many Americans haven't gotten back on their feet. They can't find work. Job growth has been slower since then than after any recession since the Great Depression. And for a lot of average Americans times are tough.
Interested to know which ones made it on air?
Should Geithner be fired over AIG bonus scandal?
FROM CNN's Jack Cafferty:
As the AIG bonus scandal continues to brew, some believe it's time for Treasury Secretary Tim Geithner to either quit or be fired.
Should Geithner be fired over AIG?
If Geithner didn't know about the $165 million in bonuses earlier, he should have. He told CNN yesterday quote "It's my responsibility; I was in a position where I didn't know about those sooner. I take full responsibility for that."
Geither insists he found out about the full extent of the bonus problems last week on March the 10; but The New York Times describes the bonus program as "a disaster hiding in plain sight."
They report that in a March 3 congressional hearing, Geithner was asked what could be done to stop AIG from paying $165 million in bonuses. The Treasury secretary responded that executive pay had gotten "out of whack" and pledged to crack down on pay at companies like AIG that were getting bailout money.
A Treasury spokesman says although that question came up two weeks ago, Geithner was "not aware of the timing or full extent" of the bonus situation until March 10.
And there's more... Officials at the Treasury, the Fed and Federal Reserve Bank of New York exchanged e-mails about the bonus program in late February. AIG revealed the bonus plan in filings last September. In November, Treasury and Fed officials negotiated the terms of these retention payments; and in December, Democrats called for a hearing on the bonuses.
Here’s my question to you: Should Treasury Secretary Timothy Geithner be fired over the AIG bonus scandal?
Interested to know which ones made it on air?
U.S. need a 2nd economic stimulus package?
FROM CNN's Jack Cafferty:
Some failing grades for the Obama administration when it comes to its efforts to jumpstart the economy.
President Obama speaks after receiving the economic daily briefing with Treasury Sec.Timothy Geithner in the Oval Office yesterday.
A Wall Street Journal survey of economists shows a majority of those polled are dissatisfied with the White House's policies. On average, they give President Obama a grade of 59 out of 100. Treasury Secretary Tim Geithner gets an average grade of 51.
The economists also pushed back once again their forecasts for when a recovery will begin - now they're saying October. That's after saying August last month. They predict the economy will lose another 2.8 million jobs in the next year - with the unemployment rate topping nine percent. Also, these economists see a one-in-six chance that the U.S. falls into a depression.
When it comes to the $787 billion economic stimulus package - the experts are mixed, with 43 percent saying the U.S. will need another package of about $500 billion. Others were doubtful that we needed any stimulus plan at all.
But it's been all the talk in Washington this week since House Speaker Nancy Pelosi suggested more spending might be needed. House Democrats have since backed off saying we need time to see how the first stimulus package plays out. But even talk of another massive plan was all it took to get Republicans and many Democrats all wound up.
Republicans argue this is proof that the first package isn't working while some Democrats are saying there's no appetite for another package and it's way too soon to even think about it.
Here’s my question to you: Does the U.S. need a second economic stimulus package?
Interested to know which ones made it on air?
Should Tax and Housekeeper Problems Cost Geithner the Treasury Job?
FROM CNN's Jack Cafferty:
Timothy Geithner, the president of the Federal Reserve Bank of New York and Obama's pick for Secretary of Treasury, hit a road block yesterday on his path to Washington to lead the nation through the current economic crisis.
Geithner's confirmation hearing is now rescheduled for after the inauguration.
His confirmation hearing turned into a closed door meeting between members of the Senate Finance Committee and the would-be Secretary. At issue, were Geithner's failure to pay Social Security and Medicare taxes while he worked at the International Monetary Fund and employing an immigrant housekeeper who had expired work papers for three months.
The President-elect and his aides chalked these problems up as honest mistakes. They were quick to point out that all back taxes, interest and penalties have been paid and filings were amended.
As Treasury Secretary, Geithner will ultimately oversee the IRS, so his tax mistakes conceivably could be an issue.
Some members of the committee said they still support Geithner, who's been widely praised for his experience. Others aren't willing to give him a pass just yet.
As for the housekeeper, she's married to an American and has her green card now.
Geithner's confirmation hearing is now rescheduled for next week, after the inauguration.
Here’s my question to you: Should Timothy Geithner's tax and housekeeper problems cost him the post of Secretary of Treasury?
Interested to know which ones made it on air?
@jackcafferty on Twitter
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