Geithner on Exit Strategies: Too Soon to Declare Victory

As more Banks start paying the TARP funds more people are starting to question how long will the US maintain its Quantitative Easing strategies. Treasury Secretary Timothy Geithner has requested that the TARP program be extended through October 3 of next year to better assure the economy has truly exited the crisis and prevent conditions from worsening.

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U.S. Treasury Secretary Timothy Geithner said on Thursday the government had to beware declaring victory too soon after managing to avert complete financial collapse by bailing out the nation’s banks.

“History suggests that exiting too soon from policies designed to contain a financial crisis can significantly prolong an economic downturn,” he told a congressional panel that oversees the Troubled Asset Relief Program or TARP.

via CNBC

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