Geithner：US to take action on “dramatic scale”

The Obama administration will take action on a “dramatic scale” to revive credit markets and strengthen banks so they are able to lend, Treasury secretary-designate Tim Geithner said recently.

Testifying to the Senate committee considering his nomination, Mr Geithner said the Obama team was working on a “comprehensive plan” to deal with the banks and hoped to unveil it soon.

“We're going to have to do more to make sure that the institutions at the core of our system are strong enough that they can lend.” Mr Geithner told the Senate Finance Committee.

He refused to offer any insight into how this might work, in spite of pressure from the markets, saying “we have seen the costs in terms of uncertainty created by tentative signals not followed up with clear actions”.

His remarks came as he repeatedly apologised for underpaying taxes in the early 2000s - a revelation that had delayed his confirmation hearing. The vast majority of members of the committee appeared willing to accept his apology.

Mr Geithner cited small business funding, student loans, car finance and commercial and residential real estate loans as priority areas. Asked about the idea of creating a so-called “bad bank” - dubbed an “aggregator bank” by some - to take on the toxic assets in the banking system, he said “good bank, bad bank-type solutions have been present at the solution to most financial crises around the world”.

But he said “it is very important that we look carefully at whether they're going to be as effective in this context as they have been in some past cases”.

Its your turn to whistle

Nick went to see grandmother with his father. In the train Nick often put his head out of the window. His father said, “Nick, keep still! Don't put your head out of the window!” But Nick went on putting his head out of the window.

Then his father took Nick's cap quickly, hid it and said,“You see, your cap has flown away.” Nick began to cry. He wanted to have his cap back. His father said, “Well, whistle once! Perhaps your cap will come back.” Nick came up to the window and whistled. Nick's father quickly put the cap back on Nick's head.

Oh! It was wonderful! Nick laughed. He was pleased. He quickly took his father's cap and threw it out of the window.“Now. it's your turn to whistle, dad.” he said gaily.