Wall Street Journal
U.S. Treasury Secretary Timothy Geithner expressed confidence Thursday that the woes of the commercial real-estate sector would not drag the economy back down.
Geithner acknowledged that it was difficult for policymakers to tackle the problem of sliding asset values and write-downs.
However, he said, "I think the economy can handle it" when asked if commercial property could reverse a domestic recovery.
"I think you can say with confidence that the financial system is stable [and that] the economy has stabilized," he told an audience of the Economic Club of Chicago.
His remarks came after GDP data released Thursday showed that the U.S. economy grew by a better-than-expected 3.5% in the third quarter.
Geithner described the first quarter of growth in more than a year as "broad and strong," noting it did not just rely on auto-sector incentives and the broader government stimulus plan.
In front of an audience of the Midwest's business and economic elite, he said that the private sector - and exports in particular - were more central to recovery than in previous downturns.
Amid a pushback from some politicians and lawmakers to the administration's financial reform agenda, Geithner said that a system he has described as "broken" was now "on the path" to resolution.
Geithner acknowledged that it was difficult for policymakers to tackle the problem of sliding asset values and write-downs.
However, he said, "I think the economy can handle it" when asked if commercial property could reverse a domestic recovery.
"I think you can say with confidence that the financial system is stable [and that] the economy has stabilized," he told an audience of the Economic Club of Chicago.
His remarks came after GDP data released Thursday showed that the U.S. economy grew by a better-than-expected 3.5% in the third quarter.
Geithner described the first quarter of growth in more than a year as "broad and strong," noting it did not just rely on auto-sector incentives and the broader government stimulus plan.
In front of an audience of the Midwest's business and economic elite, he said that the private sector - and exports in particular - were more central to recovery than in previous downturns.
Amid a pushback from some politicians and lawmakers to the administration's financial reform agenda, Geithner said that a system he has described as "broken" was now "on the path" to resolution.
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