The Bitter Critics

In contrast to his G-8 peers,Mr.Geithner has been subjected to bitter criticism by commentators at home.Among remarks made about Mr.Geithner were that he isn't worthy of respect and that he was hiding out in Rome.The critics are dissatisfied with his deliberate,consultative style.Several of them have expressed anti-European sentiments in the past,while Mr.Geithner is intent on fostering international cooperation.His few weeks in office have disappointed a Wall Street crazed by the disastrous results of its own misbehavior and ignorance.As well,Mr.Geithner takes an intellectual approach to the crisis that is culturally at odds with the vociferous impatience of day traders and television personalities.What's important now is you have around the world a much greater sense of urgency and commitment,Mr.Geithner said in Rome.We all recognize that the power of what we do individually will be much more effective if we move together,the new Treasury Secretary related.

Ministers React to Geithner

The G-8 finance ministers seemed to appreciate U.S. Treasury Secretary Timothy Geithner's presentation in Rome.Alistair Darling,the British Chancellor of the Exchequer,said it was quite clear the new American administration is getting into its stride.It wants to make a difference,not just for Americans,but for the world.The G-8 ministers described Mr.Geithner as helpful in explaining President Obama's plans,especially the integration of the various initiatives and the operation of the public-private fund for troubled assets.

World Finance Ministers Meet

The G-8 finance ministers,which include the U.S.,U.K.,Germany,Italy,Spain,Russia,Japan and Canada,met over the weekend in Rome to discuss the financial crisis.It was an opportunity for the ministers to speak with Timothy Geithner,the new U.S. Treasury Secretary,and hear the Obama administration's plans for dealing with the crisis.The G-8 focused on what to do about the troubled assets held by many large banks,that are causing the low confidence at the root of the crisis.Mr.Geithner suggeted a new public-private fund to insure some banks from further losses caused by troubled assets.Other banks could be relieved by a direct purchase of the assets by the new fund.The new rescue fund,together with an exisiting rescue fund,could add up to more than two trillion dollars.The rescue funds are in addition to the 787 billion dollar economic stimulus package to be signed into law by President Obama today in Colorado.The response must be massive,Mr.Geithner said,because the crisis itself is massive.The response must be deep and broad enough to last as long as the severe recession does.

Industrialized Leaders See Threats

The finance ministers of the Group of Eight industrialized nations,which include the U.S.,U.K.,Japan,France,Germany,Italy,Canada and Russia,are alarmed by surging oil and food prices.These prices pose a threat to the world economy as a serious challenge to stable growth,with serious implications to the most vulnerable and global inflationary pressure.Meeting over the weekend in Osaska,Japan,the ministers stated that tight supply and increasing demand was the main factor in high oil prices,though geopolitics and speculation were also to blame.U.S. Treasury Secretary Hank Paulson noted that oil production capacity hadn't risen in 10 years.The oil-producing countries should open themselves up to more exploration and production.British Chancellor of the Exchequer Alistair Darling said what we need to do,as a matter of urgency,is to increase supplies.Italy's finance minister,Giulio Tremonti,described the effect of speculation as enormous,and wants to increase the margins required of oil traders.The G-8 ministers also praised two new funds to help developing countries fight global warming.They said they remained vigilant in the face of uncertainty and downside risks in the world economy.They will take appropriate actions,individually and collectively,to secure stability and growth at home and abroad.