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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (164804)	4/1/2009 4:42:49 PM
From: stockman_scott	Respond to of 361717

Geithner Sees ‘Encouraging Signs’ in U.S. Markets (Update2) By Peter Cook and Simon Kennedy April 1 (Bloomberg) -- U.S. Treasury Secretary Timothy Geithner said there are “encouraging signs” that financial markets are recovering and expressed confidence in the response of global policy makers to the crisis. “You’re seeing encouraging signs of improvement in our markets -- we want to reinforce that,” Geithner said today in a Bloomberg Television interview in London. “I’ve never seen this much support around the world.” Geithner’s remarks reflect the view of some analysts that the worst of the economic downturn may be past, even as some banks are likely to fail and unemployment is set to worsen. The Treasury chief said the main danger is that banks and investors take too little risk and refrain from betting on a recovery. Geithner also said the Obama administration is considering a “range of options” for U.S. automakers, which have yet to submit plans that would ensure their viability over the longer term. “They’ve made some progress but they’re not there yet,” he said. Stocks have rallied in the past month on signs that U.S. bank earnings improved since the start of the year and after the Federal Reserve and Treasury stepped up efforts to thaw credit markets. The Standard & Poor’s 500 Stock Index has jumped 21 percent from its low on March 6, with the S&P 500 Financials index soaring 56 percent. ‘Powerful Program’ “There is a very powerful program of stimulus already in place,” said Geithner, who accompanied President Barack Obama to London for meetings with counterparts from the Group of 20 major developed and emerging nations. “You can see some early signs of traction in some economies already from that.” U.S. economic reports in the past month showed that consumer spending stabilized in the first two months of the year after tumbling in the fourth quarter of 2008, and durable-goods orders and home sales advanced in February. Banks may report first-quarter earnings that are better than the “quite miserable” fourth quarter, reflecting gains in home sales, John Dugan, U.S. Comptroller of the Currency, said yesterday. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, Citigroup Inc. CEO Vikram Pandit and Bank of America Corp. CEO Kenneth Lewis halted a plunge in their companies’ shares last month by proclaiming that the banks were profitable through February. Dimon and Lewis told CNBC last week that March wasn’t as strong. Car Sales Slide U.S. policy makers don’t anticipate a recovery from what’s on course to be the longest recession since the Great Depression until later this year. Data continue to show an economy that’s deep in recession. Ford Motor Co. said today its U.S. sales plunged 41 percent in March, the 16th straight monthly decline. General Motors Corp. and Chrysler LLC, the automakers who have received billions of dollars in taxpayer loans, are also due to report March sales today. “Our objective is that these companies are able to commit to and deliver a restructuring that’s going to leave them in position to survive without government assistance,” Geithner said today. “We want to build a strong auto industry. That’s going to require a significant restructuring.” The Obama administration put General Motors and Chrysler on notice this week that their previously submitted plans don’t pass muster. Geithner also said today that the administration will work with Congress on financial-rescue efforts, particularly a set of new programs designed to attract private investment to help clean up banks’ balance sheets. Investors need to “take a chance on recovery” and not shy away from risk, he said. “For them to do that they need to have confidence that the rules of the game are going to be clearly and consistently applied in the future. We’re going to need to work with Congress to make sure we do that,” he said. Geithner joined Obama at a meeting today with Chinese President Hu Jintao. China’s recent suggestion of the need for a new world reserve currency “did not come up,” Geithner said. To contact the reporter on this story: Simon Kennedy in Paris at skennedy4@bloomberg.net Last Updated: April 1, 2009 14:47 EDT