Geithner still worried about recovery


The G-7 meeting in Istanbul ended on October 3, but the worries about the global economic recovery are clearly ongoing. It would be hard to find any of the attendees who believes withdrawing support from the major economies right now is a good idea.

Treasury Secretary Geither said in his closing statement at the meeting, "Planning for an eventual exit is the responsible and necessary thing to do, but we are not yet in the position where it would be prudent to begin to withdraw fiscal and monetary policy support," according to several media reports. That leaves open the issue of what signs will be necessary for the US government to begin to step out of its role as lender of last resort for US financial firms and a major shareholder in banks and insurance companies.

Originally published