Geithner hopeful a fiscal crisis can be averted

Asked what would happen if the Bush era tax cuts are allowed to expire as automatic budget cuts take effect, he replies, "It would cause a lot of damage to the economy."

Treasury Secretary Timothy Geithner leaves a closed-door meeting with Senate Democrats on Capitol Hill in Washington, Tuesday, July 10, 2012. Senate Banking Committee Chairman Sen. Tim Johnson, D-S.D. is asking Geithner, as well as Federal Reserve Chairman Ben Bernanke, to be prepared to answer questions at a Congressional hearing later this month about allegations of global interest rate manipulation. (AP Photo/J. Scott Applewhite)

WASHINGTON (AP) — Treasury Secretary Timothy Geithner is voicing confidence the Obama administration and Congress will avert a fiscal crisis.

Geithner tells "CBS This Morning" it would be "untenable" to defer critical spending and tax decisions when the economy is still struggling.

Asked what would happen if the Bush era tax cuts are allowed to expire as automatic budget cuts take effect, he replies, "It would cause a lot of damage to the economy."

Asked if that could cause another recession, Geithner says, "Many people look at this say, yes, you would get a recession out of this."

But he says he's optimistic the government won't trip over the so-called "fiscal cliff" because, "I also think you're seeing people show more realism about what is necessary" to avoid a fiscal crisis.

Associated Press
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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