Mike, what do you make of this?
<<WASHINGTON, July 20 (Reuter) - The United States is ``well prepared'' to handle the economic and financial fall-out should the stock market collapse, Treasury Secretary Robert Rubin said on Sunday.
``The government's function ... is to make sure that we have in place the protective mechanisms so that if there is a correction ... it won't have a systemic impact on theeconomy and won't threaten our financial system in anyway,'' he said. ``I'm comfortable that we're well prepared should anything happen,'' he added on NBC television's Meet the Press program. Rubin though hastened to say that he was not commenting on whether or not a stock market drop would occur. ``As Secretary of the Treasury, it is not constructive for me to express views on markets,'' he said.
The Treasury chief described the U.S. economic outlook as ``quite favorable.'' ``We're likely to stay on a very good path,'' he added. However, he said that investors who put their money in stocks not only had to take account of the economic outlook, but also whether the market was fairly valued given their expectations.>>
Is it just PR for the good old Government wisely taking care of the foolish citizens? How can he possibly promise the favorable outcome of a calamity that has not started yet? If this is not talking up the market, then what is? ("no matter what happens, the good old Gov. will take care of the market, no risk involved" ?)
Joe |
