Geithner defends US stimulus at G8 meeting

Timothy Geithner, the Treasury Secretary, made an aggressive and spirited defense of the US government's use of hundreds of billions of dollars to revive the flagging American economy to other members of the G8. From the standpoint of the other financial ministers at the gathering in Italy, his comments may have been ill-timed. Much of the conclave was devoted to discussing how to cut back on stimulation as the global economy emerges from a violent contraction in GDP, especially among the developed nations.

Geithner's analysis of the stability of major economies, especially that of the US, is different from those of his peers. He apparently thinks that more money will have to be spent for a longer period of time in order to put America's financial status back on very firm footing.


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