The state of America's economy seems to depend on the state of Europe's. There seems little Congress can do to change that, even if they want to:
“One of the frustrations is that we don’t have any control over Europe’s decisions,” said Rep. John Campbell (R-Calif.), voicing a typical complaint. “Is our financial system sufficiently protected?”
Lawmakers seem to be stymied in coming up with a way for a domestic legislative body to address a foreign crisis, even as it adversely impacts America’s economy.
No major bills have been introduced this Congress with the intent of addressing Europe’s debt crisis and its impact in America.
. . . Bernanke told frustrated lawmakers there’s not much the U.S. can do.
“Unfortunately…we’re kind of innocent bystanders here,” he said. “I don’t have any good suggestions other than to support [Europe’s] efforts and to continue to push them.”
Treasury Secretary Timothy Geithner was probed by lawmakers Thursday for possible ways they could act. Senate Banking Committee Chairman Tim Johnson (D-S.D.) asked Geithner what policies Congress could pursue to limit Europe’s impact on America’s economy.
But again, direct solutions were hard to come by.
“We can’t want it more than they do. We can’t compel them to act,” said Geithner.
He echoed Bernanke in saying regulators were keeping a close eye on how financial institutions back home might be exposed to Europe. But other than that, the main thing Congress can do to avoid Europe’s economic problems is address its own, Geithner said.
“That’s our best protection, as always,” he said
