Timothy Geithner: EU Crisis Puts World Economy At Risk

Timothy Geithner at the Council on Foreign Relations

EU crisis puts economy at risk, warns Geithner (Independent, Oct. 7, 2011):

A downward spiral of weakening confidence and faltering economic growth in the eurozone could bring the rest of the global economy down with it, the US Treasury Secretary warned last night.

In another nudge to European countries to act decisively to resolve their sovereign debt problems, Tim Geithner said that the direct exposure of US banks to the eurozone was limited but that the country could not escape the wider consequences of Europe’s economic and financial difficulties.

“The European financial crisis has placed significant pressure on its financial institutions and slowed growth significantly in Europe and around the world,” he told a session of the Senate Banking Committee, which was holding a hearing on financial stability.

“US financial institutions, including our major banks and money market funds have substantially reduced their exposure to the economies of Europe that are under the most pressure. Our direct financial exposure to those governments and their financial institutions is quite small, but Europe is so large and so closely integrated with the US and world economies that a severe crisis in Europe could cause significant damage by undermining confidence and weakening demand.”

Mr Geithner and the Obama administration have been increasingly vocal in their admonishments to the European Union for so far failing to demonstrate it can prevent the debt crisis in Greece from hitting other countries.

Mr Geithner also had harsh words for Congress, too, which the administration is trying to persuade to pass a new economic stimulus bill. “The US economy in general, in most times is much stronger than Washington and it can withstand prolonged periods of Washington doing nothing. We are not in one of those moments now because the things that are burdening the economy and making growth weaker are things that only Congress can solve.”

See also:

Bank of England Governor Mervyn King: World Facing Worst Financial Crisis In History – More QE Justified!

IMF Advisor Robert Shapiro: Could See Eurozone ‘MELTDOWN’ in 2 Or 3 Weeks, Crisis ‘More Serious Than The Crisis In 2008?

British Foreign Secretary William Hague Condemns Crumbling Euro As A ‘Historical Monument To Collective Folly’, Says Euro Is A ‘Burning Building With No Exits’ Claim Is Correct

And elite puppets Paulson/Geithner, Obama bin Bush and the Fed banksters have already destroyed the US …

Tim Geithner Admits … US Economy Is In ‘An Early Stage’ Of A Crisis

US Poverty Rate Swells To Nearly 1 In 6

‘Welcome To The Recovery’: The US Jobs Crisis Worsens – Unemployment Report Bleak On All Counts

… and the greatest financial collapse in world history is coming:

Gerald Celente On Yahoo! Finance: The REAL Crash Is Coming! (Video – Sep 15, 2011)

More Than 1 In 3 International Investors Expect GLOBAL ECONOMIC MELTDOWN Within The Next 12 Months – Eurozone Teeters On The Verge Of A ‘Euroquake’ If Greek Default Is Bungled

This is the Greatest Depression.

2 thoughts on “Timothy Geithner: EU Crisis Puts World Economy At Risk”

  1. Of course none of it has anything to do with Geitner, Bernanke, Paulson, The Fed, the Sub Prime and the greed which infests the US Financial system………has it?

  2. Well its nice to see you can google “u.s. financial crisis” and read off the names of usual suspects, squodgy. I noticed that one name is missing. If you are going to blame those people, you must also include our countries leader, Obama. I think you are missing the point of this article and of the whole crisis. You need to blame that entire generation of Americans and workers in the financial sector. The young people of this country are unhappy with the lies and the way things have been done in the past. Its time to move on and for the greedy, aging population to let go of the kung-fu grip on their checkbooks and give the United States of America the chance to succeed. It’s time the elderly wake up and realize they are ruining this great country for their children and grandchildren. Please fix this, I dont want to learn Chinese or Arabic.


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