Geithner: Another Meltdown is 'Certain' — Raising Taxes on the Wealthy Will Come

NewsMax.com
May 19, 2011

Treasury Secretary Timothy Geithner threw a bomb at America’s financial future last night, saying he is “certain” another financial catastrophe is on the way and that there is no way of reaching agreement on the debt ceiling without increasing taxes on the wealthy.

And he blamed a combination of timid politicians and credit card-debt-ridden Americans, rather than Wall Street and the big banks, for the financial woes that have beset the country over the past three years.

Geithner was speaking at a New York screening of the HBO adaptation of Andrew Ross Sorkin’s book “Too Big to Fail.” It came on the day that Sen. Tom Coburn, R-Okla., pulled out of the “Gang of Six” trying to find a bi-partisan solution to the debt ceiling crisis.

Geithner said, “I’m certain we will” experience another crisis but not when or what kind.

Billionaires Dumping Stocks, Fleeing Market

The Treasury Department did not immediately respond to Newsmax’s request for comment on the Secretary’s remarks.

Geithner made his comment on taxes after The Daily Beast’s Lloyd Grove asked him if there was any solution to the debt ceiling crisis that did not involve raising taxes on the wealthy, despite Republicans’ fervent opposition.

“No,” he said, adding, “It might take them some time to come to that realization.”

Geithner said he does not know when the next meltdown will happen, nor what kind it will be, during a question-and-answer session with Sorkin and Pulitzer Prize-winning financial writer Liaquat Ahamed. But he warned it is on its way.

“It will come again. There will be another storm. But it’s not going to come for a while.” When Sorkin tried to press him for details, he added, “You will not know. It’s not going to be possible for people to capture risk with perfect foresight and knowledge.”
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