US Treasury Secretary Henry M. Paulson, Jr. delivered remarks on the financial system yeterday afternoon at the Annual Reagan Lecture at the Ronald Reagan Presidential Library, Simi Valley, California
The Treasury Secretary was later asked 'When do you expect our economy to finally hit bottom so we can begin the process of recovery?' He had no direct answer for the questioner. ..providing the following excuse that he apreciated straight blunt questions, but as treasury secreatry, he could not always be so blunt with answers
What ? I can't believe he said that!!!
Mr Secretary--It's time to be blunt with the American people and everyone else in the world who is looking to America for leadership in this recession and financial crisis which the US now reluctantly admits they instigated.
What's even more scary...the USA Treasury Secretary admitted at the end of his speech:
""Until the financial crisis is behind us, we must remain vigilant, ready to respond and to manage unpredictable events as they occur. Our first priority is on recovery. And then we will need to repair our financial system and the global system to help prevent this from ever happening again," Paulson said."
What unpredictable events? Most people with half a brain see that we are heading for more inflation in some sectors if not the risk of deflation, as this recession or depression (take your pick) gets worse.
I listed more then a dozen bubbles which have yet to burst and if the Treasury Secretary can't see them or won't admit to seeing or anticipating them then he shouldn't be in office-come to think of it he won't be for much much longer. I hope that Obama's cabinet is much more transparent.
How ironic that just two years ago exactly to the date on Nov 20, 2006 Mr Paulson was defending the American financial system and the economy as the best in the world. What a difference just two years make !
"The U.S.economy is the envy of the world, and we must keep it that way.
Capital markets are the lifeblood of our economy. They connect those who need capital with those who invest or lend capital. They play a vital role in helping entrepreneurs implement new ideas and businesses expand operations, creating new jobs. They give our citizens the confidence to invest, earn higher returns on their savings, and reduce the cost of borrowing for student loans, mortgages, and consumer credit.
Our capital markets are the deepest, most efficient, and most transparent in the world. We are the world's leader and innovator in mergers and acquisitions advice, venture capital, private equity, hedge funds, derivatives, securitization skills, and Exchange Traded Funds. This expertise has made our leading financial institutions, many of them headquartered right here in New York, leaders in Asia, Europe, and Latin America. U.S.commercial and investment banks contribute greatly to economic success all around the globe."
Source: From the Remarks by Treasury Secretary Henry M. Paulson on the Competitiveness of U.S. Capital Markets Economic Club of New York New York, NY November 20, 2006