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Tim Geithner, the US Treasury Secretary, has announced that the Obama administration can shift money away from the bail-out of financial institutions and direct it towards job creation instead.

Geithner said money was being repaid in greater volumes by banks and that he expected $175 billion to come back by the end of next year.

Ironic that this comes out on the same day that employment data comes out that is a bit positive.

The economy shed only 11,000 jobs in November, well below the 130,000 loss financial markets had braced for, while the unemployment rate unexpectedly dropped to 10 percent from October’s 10.2 percent, government data showed on Friday.

Stock prices are rising on the positive headlines, but it might not last. There is still 10% unemployment, just fewer lost jobs than predicted.

As written here long ago, the focus on jobs should have come with the initial bail-out.


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