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Welcome back business leaders and government officials meeting in New York today and tomorrow at the button would gathering Liz MacDonald has a front seat -- pace university in New York -- -- lens.
Hi Alexis down here with that Philip -- and he's the writer of the really widely read column called the but what console which is Gavin gathering -- named Philip it's good to be with you today on the and Alexis we've got Treasury Secretary Geithner speaking later today we've got a lot of heavy hitters here.
They have Sheila Bair coming tomorrow you have George Soros speaking tonight Larry Summers -- let's focus on Treasury Secretary Tim Geithner what do you expect to hear from.
And this afternoon but I'm sure you want to reassure people about the economy and point the recent statistics showing some improvement.
But I'd like there is some idea how he thinks the financial system will confide -- -- time we've had an enormous amount of change enormous amount of government intervention.
And to get some idea how we will -- regulate that's -- and -- how he thinks eventually we will settle down so that.
Banks are lending probably again and government has.
It's you know Philippine -- it hasn't quite Henne get the government out of the economy now the taxpayer owns 600 banks to car companies and insurance conglomerate.
And have the Federal Reserve that hasn't if it uses all of its liquidity program.
Has about ownership about 17%.
17% of the -- -- -- market for you know Fannie Mae Freddie Mac debt mortgage backed securities and treasuries.
How can the Fed exit out of us -- isn't without rocking the markets -- that key question right now for Geithner and for any government official here.
Yes it is in Japan in the nineties they did all this intervention when they tried to take away the economy lapse back into recession so.
If you're saying that the economy is like on the oxygen mosque the last thing you want to do if the patient is critical it's ripped the oxygen a mosque away too quickly.
So they've got some of wean the patient off the Mets and do it detox diet if you like and it's gonna be probably a couple of years before we can really see policy -- sentinel.
Right think it can only see that when you hear talk now making it better serve the systemic risk we're there to regulate what are what do you make of this in other words.
We've had calamities in the financial system going back if a crisis and before that and each and every time and the government regulators -- responses to -- Other bank regulators more power and more budget in -- the SEC which you know looked into -- -- up nine times.
They're getting more power more budgets in other words despite all the their failures they're getting to get they're getting more -- -- see that now with the batteries served so.
The fear is that the systemic risk rate regulated essentially be you know permanent TARP program for the economy and for the financial markets -- not an issue.
Of course it is an issue but the difficulty is.
Allowing the markets to -- free he has Alan Greenspan -- wanted ulcer medicine to problems he didn't believe in intervening.
To pop market bubbles and that's one race and while we cut the kind of credit that we had.
-- really -- to question the Fed might face and say yes time is let's say 20121013.
That stock market looks bubbly.
But the economy still -- just the fate intervened trying to pull the stock market bubble.
At a time when economies to week exactly the problem that they were worried about him like 19992002002.
How to square the -- outlook with the financial market outlook.
Are right mr.
-- and it's so good to be -- thank you so much.
Elect has been down here the -- -- gathering will be here tomorrow as well tracking a lot of speakers but a heavy hitters weighing in on how to fix the financial crisis.
Which to some people down her Wall Street is still on going back to elect the all right -- terrific in --
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