CNBC’s Jim Cramer spoke with Treasury Secretary Timothy Geithner this morning about the global economy and what sovereign nations in Europe and around the world are doing to deal with the threat of default.. In this broad-ranging discussion, Geithner tells Cramer growth in the U.S. is weaker than he would like, largely due to the shocks of the past year. The political dysfunction in the U.S. & Europe only adds to the uncertainty, he says.
Some interesting points:
- The economy is still healing. Then we had a bunch of adverse shocks – the drama in Europe, the terribly damaging political disfunction. It leaves people wondering whether the political system can do right thing. That’s very damaging to confidence.
- Europe has a terrible growth problem.
- There is not a chance that there will be another Lehman. Angela Merkel has to do what it takes to keep her promise that there is zero chance of a Lehman.
- How about trade deals that help our exports? Look, if we don’t do trade agreements with countries like Korea, we lose market share, and we believe Korea, Columbia and Panama are good agreements that give us better position to negotiate with the rest of the world. Countries around the world will have an incentive to negotiate with us. Now they don’t -We’re trying to change that.