Posted on September 29th, 2008 at 2:53 pm by Steve
From Hank’s Wikipedia entry:
In Spring 2007, Secretaty Paulson told an audience at the Shanghai Futures Exchange that “An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention.” [Bloomberg News]
In August 2007, Secretary Paulson explained that U.S. subprime mortgage fallout remained largely contained due to the strongest global economy in decades. [Boston Globe]
On July 20, 2008, after the failure of Indymac Bank, Paulson reassured the public by saying, “it’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.” [CBS News]
On August 10, 2008, Secretary Paulson told NBC’s Meet the Press that he had no plans to inject any capital into Fannie Mae or Freddie Mac.[Bloomberg News] On September 7, 2008, both Fannie Mae and Freddie Mac went into conservatorship.