The U.S. government bailed out the nations' banks and big companies like General Motors and insurer AIG but has no plans to own those companies forever, says Lawrence Summers, director of the White House's National Economic Council.
“The government's direct actions to invest money in companies were once-a-generation or once-every-two-generation responses to a once-every-two-generation emergency,” Summers told the Wall Street Journal.
“They were designed to be, and have proven to be, temporary. There is no aspiration of any kind to change the private-sector basis of our economy.”
The Obama Administration has spent billions bailing out banks and financial institutions while figuring out how to regulate financial institutions and their regulators in order to prevent a similar financial crisis in the future, an effort to avoid the worst recession since the Great Depression over sixty years ago.
For Summers, the idea is not to create more oversight organizations but rather, reform the ones we already have.
“Today, given that government touches more of the economy, the response to problems is more reform of institutions than the creation of new institutions,” Summers says.
Many economists agree these days that the U.S. is emerging from its recession although unemployment rates still remain high.
Summers believes unemployment rates will begin dropping by spring of 2010.
“I believe, as do most professional forecasters, that by spring, employment growth will start to be turning positive,” Summers told ABC.
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