Monday, September 22, 2008

PAULSON UNDERSTATED THE PROBLEM EVERY STEP OF THE WAY

Dean Baker, Prospect - In March of 2007, after the first shock waves of the housing meltdown had already hit, the Associated Press reported Mr. Paulson's view that the credit difficulties linked to the housing slump would be limited.

In August of last year, after the second round of financial shock waves disrupted markets worldwide, Paulson commented, "We have the strongest global economy I've seen in my business lifetime."

Just last March he warmly endorsed a reduction in the capital requirements for Fannie Mae and Freddie Mac, saying "additional capital [invested in mortgages by Fannie and Freddie] will enable the companies to help more homeowners and will strengthen the underlying fundamentals of the mortgage market."

At every point along the way, Secretary Paulson has failed to see the extent of the crisis resulting from the collapse of the housing bubble. This raises serious questions about his judgment.

1 Comments:

At September 22, 2008 4:22 PM, Anonymous Anonymous said...

America, the problem with these people is not that they didn't know what they were doing, the problem is they knew what they were doing and did it anyway.

get

a

clue

already?

 

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