US Treasury Secretary says that the Economy is still Struggling
Despite the news that the US economy is now on its way to recovery, Timothy Geithner warned that this year is still one of those difficult periods.
During a congressional hearing, Geithner said that the effect of the financial crunch may last for a long time. On a more positive side, the Treasury Secretary of America said that the government already recovered about half of the total amount that it used for the Troubled Asset Relief Program. So far, the investments o the TARP generated as much as 16 billion pounds or equivalent to 24 billion US dollars which can be another added revenue for everyone who pays taxes in the country.
At the same time, Timothy Geithner also said that almost all Americans are currently looking for more employment and financial aid. Unfortunately, there are also millions of Americans that are still tormented by the damage caused by the past recession as well.
Nevertheless, Geithner said to the Congressional Oversight Panel that the current government of United States is already boosting the economy. The actions even cost them lesser than the amount that they expected. With the help of the TARP, the financial stability is being restored gradually. The good news is that they did not spend high cost for that.
Before the year 2008 ended, the Congress approved the bail out for the TARP. This cost them 700 billion US dollars. The TARP has been recognized as one of the main influences in giving the economy a boost. The invested made on the TARP actually grew during the Q3 to Q4 of 2009. It was indeed a great news especially after the country experienced a very long and daunting recession.
But despite these acclaims for the TARP, there are still criticisms since it has not met some targets particularly the increase in money for bank lending.