Newsweek --Michael Hirsch: Back From the Brink -- Geithner may have it right after all.

Paul Krugman notwithstanding the economy may be taking it's first steps towards recovery according to the Newsweek correspondent.

Excerpt report linked above:

over the last three weeks the markets have pulled back from the precipice. As Geithner and the Obama administration have laid out most of their plans, we have gone from a desperate and pervasive fear that bank stocks might drop out of sight altogether—leading to a depression after all—to a steady rebound in financial securities. Whereas a month ago there was a real danger the major banks would all collapse at once and become government wards, today even the massively mismanaged Citigroup is no longer a pathetic penny stock (it's soared to the $3 range).

After two months of wondering and waiting, the major elements of Geithner's and Obama's vision for recovery are in place: the $895 billion stimulus; the Term Asset-Backed Securities Loan Facility (TALF) scheme to resurrect the securitization market; the housing-mortgage rescue. And now we finally have details of Geithner's public-private partnership to create government-backed "funds," which by this summer are supposed to conduct an auction for toxic assets (recently euphemized by the Treasury as "legacy" assets). "We've seen the various pieces of the puzzle finally coming together," said Abby Joseph Cohen...

tags: recession  citibank  tim geithner  linkblog 20  obama administration  ben bernanke  economy  wall street  banks  

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