Worst predictions redux (All spoken by Hank Paulson):
April 20, 2007 — “I don’t see (subprime mortgage market troubles) imposing a serious problem. I think it’s going to be largely contained.”
July 26, 2007 — “I don't think it [the subprime mess] poses any threat to the overall economy.”
November 29, 2007 — “While the difficulties in housing and credit markets and the effects of high energy prices will extract a penalty from growth, the US economy has many strengths, and I expect the expansion to continue,”
December 7, 2007 - “The US banking system is well-capitalized and ‘we have a strong deposit insurance system that provides good coverage for the savings of hard-working Americans.’”
March 16, 2008 — “I have great, great confidence in our capital markets and in our financial institutions. Our financial institutions, banks and investment banks, are strong. Our capital markets are resilient. They’re efficient. They’re flexible.”
May 16, 2008 — “Looking forward, I expect that financial markets will be driven less by the recent turmoil and more by broader economic conditions and, specifically, by the recovery of the housing sector.”
July 20, 2008 — “It’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.” |
