Helping economy recover

Friday, April 24, 2009 | 2:07 a.m.

Treasury Secretary Timothy Geithner gave the nation’s financial bailout performance mixed reviews this week, expressing confidence that there is enough money left from the $700 billion Troubled Asset Relief Program to assist and stabilize banks while stating that credit markets are still too tight.

Signs of bank stability may bring cheer to Wall Street. But it remains a sore point on Main Street that businesses continue to find it difficult to secure affordable loans to meet payroll and purchase equipment while consumers struggle to obtain the cash necessary to buy cars and pay for college tuition.

Testifying Tuesday before the panel created by Congress that is overseeing the bailout program, Geithner said that the cost to borrow money is still too high, which is not good news for businesses or consumers.

In a letter Monday to panel chairwoman and Harvard Law professor Elizabeth Warren, Geithner also said seven bailout recipients have repaid the Treasury Department and that others have announced that they intend to do so in the near future.

That may be an indication that banks are regaining a healthy footing, but it’s difficult to detect evidence of that from Main Street’s perspective.

Rep. Jeb Hensarling, R-Texas, a panel member, made a valid point when he told Geithner: “The public and this panel have a right to know how Treasury defines success. For many it is difficult to discern.”

It would be beneficial for businesses and consumers to get a clearer indication from the treasury secretary as to when Americans can expect to see improvements in the credit markets. Geithner could do the nation a favor by increasing pressure on bailed out banks to improve their transparency so the public can rest assured that those financial institutions are doing all they can to meet borrowers’ needs.

The public is eager to do its part to kick-start the economy. But foot-dragging on the part of financial institutions is getting tiresome, especially here in Southern Nevada, where double-digit unemployment is making economic recovery that much tougher.