NO CONFIDENCE BUILDER, HERE - PUALSON GUT PUNCHES THE MARKETS
Treasury Secretary Paulson kicks the can down the road, as if there were all the time in the world:
In summary, I am very proud of the decisive actions by Treasury, the Fed and the FDIC to stabilize our financial system. We have done what was necessary as facts and conditions in the market and economy have changed, adjusting our strategy to most effectively address the urgent crisis and preserving the flexibility of the President-elect and the new Secretary of the Treasury to address the challenges in the economy and capital markets they will face in the coming months.
Maybe 8,000 to 9,000 people will be foreclosed on today, for whatever reason and with whatever consequences ...
Time will tell, but whatever his stumbling that can be reasonably forgiven, I suspect that history will judge him harshly...perhaps as it becomes clear(er) that 'Hope Now Alliance' was so poorly and ideologically conceived.
Even worse than that, because his abject refusal to take action to address those now glaring inadequacies will be interpreted as intent that the program was designed as a ... limp handshake, at best.
Update: He's making up history now (i.e. we came up to the Hill with the objective of putting capital into the banks). You can't spin the markets that way with your credibility and get away with it. It's sad. We really need leadership, today, not as far down the road as January 20th.Update2: Paulson's Treasury seems unable to put together two-in-a-row or something. After his comments, Citibank hits 52-week low today at $8 and change. Agency spreads wider.
Update3: Citibank now at a new low...
Update4: The bottom opens up. Equity markets are setting new lows going into final hour of trade, a fine accomplishment for "Little Hoover's" Treasury Secretary, today. What do you expect when you come up to the Hill to declare that economic stabilization is beyond the scope, in your opinion, of the economic stabilization bill? Let's hope for the final hour, otherwise this is a serious technical breakdown, most likely.
Update5: The equity market recovers, for now, luckily for him. You can see why Hank became head of Goldman. He's so smooth the legislators don't even know they are being "handled" (e.g. I feel your pain, etc.).
