Timothy Geithner Tries to Calm Nerves Over Europe’s Uncertain Fate

“We have not relented on our principles,” Mr. [Jean-Claude] Trichet told Der Spiegel, the German newsmagazine, according to a transcript on the bank’s Web site. “Price stability is our primary mandate and compass.”

And in an interview broadcast on Sunday, the U.S. Treasury secretary, Timothy F. Geithner, signaled his confidence that Europe would resolve its debt crisis and that the American economy would withstand its impact. “Europe has the capacity to manage through this,” Mr. Geithner told Bloomberg Television. “And I think they will.”

As investors absorb the details ”” and the potential weaknesses ”” of the $1 trillion European rescue plan, Mr. Geithner seemed to be trying to draw a sharp, if implicit, contrast to remarks last week from another senior economic adviser to President Barack Obama, Paul A. Volcker. Mr. Volcker, a former Federal Reserve chairman, startled some investors when he spoke of a possible “disintegration” of the euro zone ”” a striking shift from his expressions of confidence of only two months earlier.

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Posted in * Economics, Politics, * International News & Commentary, Credit Markets, Economy, Europe, Germany, Greece, Politics in General, Portugal, Spain, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government, Treasury Secretary Timothy Geithner

3 comments on “Timothy Geithner Tries to Calm Nerves Over Europe’s Uncertain Fate

  1. Sick & Tired of Nuance says:

    Maybe European politicians actually READ stuff they vote on! We’ll see if they can navigate this minefield.

  2. Br. Michael says:

    Oh, well, what the heck, let’s run up some more debt. And let’s not hear anymore that Bush’s debt was bad. If a little debt was good a lot must be ever better. Let’s spend till the cows come home. I’ll send the Govt. my wish list tomorrow.

  3. Ad Orientem says:

    “Don’t worry. We have just stopped to pick up a little extra ice for the bar in the First Class lounge.”

    -Captain of the Titanic