Geithner Gabs

Mr. Geithner made the following remarks, as reported by the LA Times,0,1222008.story, he said, “manufacturing is coming back, with factory payrolls up by more than 400,000 since the start of 2010.” Then he said, “Household debt is down 17 percentage points relative to income since before the crisis,” which was followed by “The changes are very modest, and on the richest Americans the effective tax rate is still very low. Life is about alternatives. If you do not like the plan, you must ask: ‘Where are you willing to find another $1.5 trillion?'” to encourage business support of deficit reduction.

Do you suppose the increase in factory payroll is due to the REactivation of jobs lost in the auto industry, which was bailed out by the beneficence of the American taxpayer? We are told the majority of the debt has been paid back. We know that corporations pay taxes too… .

Household debt has diminished relative to household income. Be still my heart! Who is extrapolating the data for him and in what context?

The Secretary has acknowledged the masses. He soothes the weary workforce, in suggesting that while the richest Americans have a very low tax rate, another 1.5 trillion could be found somewhere.

Where, where will 1.5 trillion be found? Who will take a little bit less of the nothing that we’re expected to make do with now? Student loans are defaulting, yet another round of foreclosures is in the offing , and the cost of living is skyrocketing.

Read for content, Mr. Geithner isn’t saying much.


About elroyjones

Married, no children, responsibly self-directed, living happily.
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4 Responses to Geithner Gabs

  1. And, I suspect the household debt has diminished because so many have lost their homes.

    • elroyjones says:

      A cancellation of debt doesn’t always follow foreclosure. In the majority of states the lender can sue for the balance owed on the mortgage if a sale doesn’t yield satisfaction of the principal amount owed.

      Household income has likely diminished which has to have an effect but debt has decreased “17 percentage points relative to income”. I can’t imagine that debt has decreased due to sweeping consumer debt write offs on bank balance sheets.

      People are more frugal and consumer credit is harder to get unless there is a debt to income ratio to support repayment.

  2. gkinnard says:

    I’ve never figured Geithner out. Sometimes he seems right on target, sometimes he seems detached and off in another world. He’s always reminded me of a young Dr. Strangelove.

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