Geithner hopeful a fiscal crisis can be averted

Treasury Secretary Timothy Geithner walks out the White House in Washington, Wednesday, Dec. 15, 2010, and across Pennsylvania Ave., to the Blair House, for a scheduled working meeting with business leaders. (AP Photo)

July 24, 2012 6:09:39 AM PDT
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.