Entries in Tim Geithner (3)


White House Official: 50-50 Chance Debt Crisis Will be Solved by Aug. 2

(Stephen Chernin/Getty ImagesWASHINGTON) -- Financial markets around the world opened with unsettled anxiety Monday, feeling the ripple effect of U.S. politics as the pressure is on for Washington to settle a deal to avoid a major debt crisis. 

A senior White House official tells ABC News there’s a 50 percent chance the issue will be resolved by this time next week -- just one day before the federal government may officially go broke.

Aug. 2 marks the day the federal government will run out of money, Treasury Secretary Tim Geithner has said.

Like a ticking time bomb, the pressure is on raise the debt ceiling before Aug. 2.

The challenge remains finding a middle ground for Democratic and Republican cooperation.

Senate Majority Leader Harry Reid’s deficit reduction proposal is an area of contention for both parties, as Republicans feel the solution to the $2 trillion debt reduction is riddled with “gimmicks,” while Democrats say Rep. Paul Rep. Paul Ryan’s GOP budget plan is very similar -- relying on troop withdrawal in Iraq and Afghanistan to promote savings.

As Washington wades in uncertainties, one thing is clear: for a decision to be made come Aug. 2, compromise will have to be the name of the game.

Copyright 2011 ABC News Radio


At Deficit Talks, Tim Geithner Explains Default Realities

Darren McCollester/Getty Images(WASHINGTON) -- Treasury Secretary Tim Geithner's presentation to congressional leaders on Thursday was aimed at convincing any of those who remain skeptical that the Aug. 2 deadline is real, sources tell ABC News.

The Treasury Secretary walked through specific debts owed on certain days. For instance, $87 billion becomes due on Aug. 4.

Geithner walked through not only the specific debts and obligations, and the reality of the depleted treasury, but what the reactions would likely be in the markets, among bond-holders and lenders, and for ratings agencies. And it wasn't pretty. No one there disagreed with his bleak predictions.

Copyright 2011 ABC News Radio


Geithner Predicts ‘Catastrophic Damage’ Should Debt Limit Not be Raised

Photo Courtesy - Getty Images(WASHINGTON) -- Treasury Secretary Timothy Geithner issued a dire warning Thursday should Congress vote against raising the nation’s $14.3-trillion debt limit.

In a letter to House Speaker John Boehner, Geithner said such a vote would mean the Treasury “would be prevented by law from borrowing in order to pay obligations the Nation is legally required to pay,” and would cause “catastrophic damage to the economy.”

Geithner has asked that Congress act quickly to raise the ceiling.

“Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses and could lead to the loss of millions of American jobs," Geithner wrote. “Even a very short-term or limited default would have catastrophic economic consequences that would last for decades.”

Saying that Congress needs to tread carefully, Boehner issued a response to President Obama’s request to raise the limit.

“The American people will not stand for such an increase unless it is accompanied by meaningful action by the President and Congress to cut spending and end the job-killing spending binge in Washington,” Boehner said. “While America cannot default on its debt, we also cannot continue to borrow recklessly, dig ourselves deeper into this hole, and mortgage the future of our children and grandchildren.”

Boehner urged a bipartisan cooperation in addressing the budget process in the New Year.

Copyright 2011 ABC News Radio

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