Introducing Treasury Secretary Jack Lew

There was nothing significant about the rounds that the new Treasury Secretary made to different media outlets this week, except to assure us everything is on track to economic stability. It seems to me he was a calming influence on a week of some extremes.

The stock market made new highs, and bank executives were grilled by the Senate, even Allen Greenspan made an appearance this week saying everything was fine in the financial markets. We are of course faced with across the board budget cuts, that Paul Ryan budget proposal, and a lagging stalemate in Congress.

What I think is going on is that the Fed is getting ready to pull back the easy access to cheap money. The too big to fail banks are being asked to over capitalize, and in that process interest rates will go up. Compared to other countries our banking system looks like a safe bet, and the value of our currency is solid.

It seems like everything is on track for a stand alone banking system, free from government help. It would also mean that the pricing of Real Estate will become more realistic. Ultimately it will mean consumer credit will tighten.

I look at it as good news, but we will see.

Share :
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *