Business

Geithner defends extension of bailout program
by Magdalena Rosova

Treasury Secretary Timothy Geithner defended his extension of the government's financial bailout. On Thursday he said the extension is necessary to safely end the program. The program was supposed to finish at the end of this month, but Geithner said it would run until Oct. 3. es originally planned. Elizabeth Warren, the head of the independent oversight panel which monitor the bailout program, said that the aid was important part of the government's strategy to save the country from total collapse. But she also mentioned that for consumers it is still very difficult to obtain loans even though big banks are relieved thanks to the program. Therefore she warned Geithner! that there must never be another bailout program like that. Paul S. Atkins, a member of the panel, fins the extension of the program very irresponsible saying it is playing with taxpayers' money. But there are also another members of panel who say the extension was the only responsible thing to do. But the government said that banks are giving back the emergency money they received in loans much faster than expected. These money plus interests means that the program will cost $400 billion less. President Barack Obama said that the lower spending would make it possible to free up money for a new stimulus package for job creation. New stimulus should encourage small businesses to hire more workers, support public works projects and also people who make their homes more energy efficient. The government is winding down the program, which made public angry because of the government's evident bias for Wall Street.

related story (sgx16104): http://ecreditdaily.com/2009/12/geithners-defense-bailouts-n...

by Magdalena Rosova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 9:10 AM