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Paulson: 'I Wish' There Were Quick-Fix To Crisis

Treasury Secretary Hank Paulson just concluded a news conference, talking about the $800 billion loan fund announced by Treasury and the Fed to bolster personal credit.

"I wish, and I know you all wish, there was sort of one action we could take and the economy would turn around and the financial system would be in the kind of shape we'd like it to be in," Paulson said. "But that's not the kind of world we live in."

Paulson said it is "naive" to think the $700 billion bailout/rescue by itself would solve the nation's financial crisis.

Paulson bristled when asked by a reporter if he was simply "running out the clock" on his term as Treasury secretary.

"I am going to run right to the end," Paulson said. "If you've got any doubt about that, you're missing the point."

The secretary said that Treasury continues to have "no time line" on when or if it will ask Congress for the next installment of funds from the $700 billion government Wall Street bailout/rescue.

Paulson said today's new credit fund is only a "starting point" and it could be expanded. He added that he believes that the government conservatorship of Fannie and Freddie has "worked out."

"Today’s announcement by the Fed that it will purchase direct debt obligations of Fannie Mae, Freddie Mac and the Federal Home Loan Banks, and also mortgage backed securities guaranteed by Fannie, Freddie and Ginnie Mae, underscores our support for the housing market," Paulson said. "Nothing is more important to getting through this housing correction than the availability of affordable mortgage finance."

Paulson was asked if the near-failure of Citi and required government lifeline was a repudiation of Paulson's earlier statement that the bank failures have largely stopped since Congress approved the bailout.

In fact, Paulson said, the Citi bailout is evidence that the new system is working: "We laid out a strategy that said the stability of the financial system is critical, the strength of the financial system is critical and we are able to creatively use the new authorities we've been given," he said. "That's exactly what we did in the case of Citi."

Here's the text of Paulson's remarks.

-- Frank Ahrens

The Ticker is Twittering!

By Frank Ahrens  |  November 25, 2008; 10:39 AM ET
Categories:  The Ticker  | Tags: Paulson, bailout  
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Comments

We were not "naive" as Paulson says, we were told, the one time the president spoke to the country that the 700 billion was the best plan and not the last option and well thought out and the way to end this, so he needs to get his story straight before he insults the american public who knew all along that not only was the 700 billion not enough, that it would not work.

paging wardrobe, it appears the emperor is not wearing any clothes.

Posted by: tumbleweedhips | November 25, 2008 10:59 AM | Report abuse

No doubt Paulson, the through and through conservative republican with his perverse ideology of inequality, rights only of his kind, at all costs like Bush has been operating, want to keep on propping up the flawed economics system by using flawed scheme and taxpayers money. One wonders when he like the megalomaniac Bush is going to start saying for the people to believe his crap. Hell if the bail out was working all these private investment banks, insurance companies and the like would not be on the brink of going belly up.

The name of the game is that the Fed and the Treasury keeps on propping up these malignant narcissist uncouth conservative republican like minded bankers with no oversight, rules, regulations or any form of transparency. The only people know about these arrangements are the insiders at the banks and influence peddling and connected, who cut these deals. They not only have inside info but are the real participants of the flawed scheme.

At the precise timing, they get their private loans with no questions asked and while the stock market YO YO swings to the low, they buy and then wait 24 to 36 hours, when the YO YO swings back up. At the top with gain of 400 to 500 point, they sell making hefty profits and get out.

This pattern repeats itself every two or three days while the country winds up getting more and more deeper in debt, the people losing their homes, jobs and no where to turn. While these chronic scapegoaters, uncorrectable grab baggers keep on sacrificing the country and the people to rake in their profits and as usual keep on promoting their outward / hypocrite self image of doing good.

As far as Paulson and company. The quick fix solution is for these SOB to jump of the 14th street bridge and collective drown themselves.

Posted by: goldengate | November 25, 2008 11:36 AM | Report abuse

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