Paulson braces public for months of tough times

[jtyangel]

http://biz.yahoo.com/ap/080720/paulson_economy.html

WASHINGTON (AP) -- Treasury Secretary Henry Paulson sought to reassure an anxious public Sunday that the banking system is sound, while also bracing people for more troubled times ahead.

"I think it's going to be months that we're working our way through this period -- clearly months," he said.

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Paulson said the number of troubled banks will increase as they struggle to cope with big losses on bad mortgages. The government this month took over IndyMac after a run led it to become the largest regulated thrift to fail.

"Of course the list is going to grow longer given the stresses we have in the marketplace, given the housing correction. But again, it's a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation," he said in broadcast interviews.

Paulson used appearances on the Sunday talk shows to tell people that deposits up to $100,000 are fully insured. He said no one has lost a single penny on an insured deposit in the 75 years that the Federal Deposit Insurance Corporation has operated.

 

[Chris_]

When you add the nomination of a junior senator whose only qualification is he is Black to the run on FDIC Indybank by people with deposits < 100K, you must conclude the American people are, by and large, very stupid and easily stampeded.

This is the "Jay Walking" generation making serious decisions, folks.

I am so glad I don't have kids to see the destitution that will be left behind.

[jtyangel]

When you add the nomination of a junior senator whose only qualification is he is Black to the run on FDIC Indybank by people with deposits < 100K, you must conclude the American people are, by and large, very stupid and easily stampeded.

This is the "Jay Walking" generation making serious decisions, folks.

I am so glad I don't have kids to see the destitution that will be left behind.

Are you saying that Paulson should not have urged caution when he knows the worst is still ahead with the mortgage issues and that more banks are likely to fail because of what is ahead? I think he's doing the right thing. The economy is not in the total shitter, but there are some very serious considerations and he is expressing those to the public. I'm sure those who sat on Enron in retirement accounts and were assured all was well would have appreciated an honest head's up as to the state of finances in that company;-)

Personally, I think he said exactly what he needed to and that is that there are things to urge caution, however the fundamentals long term are secure and FDIC is still strong to protect deposits. People in a free nation should have the information they need to utilize that freedom in their financial decisions.

*don't bitchslap me free*

[Chris_]

When you add the nomination of a junior senator whose only qualification is he is Black to the run on FDIC Indybank by people with deposits < 100K, you must conclude the American people are, by and large, very stupid and easily stampeded.

This is the "Jay Walking" generation making serious decisions, folks.

I am so glad I don't have kids to see the destitution that will be left behind.

Are you saying that Paulson should not have urged caution when he knows the worst is still ahead with the mortgage issues and that more banks are likely to fail because of what is ahead? I think he's doing the right thing. The economy is not in the total shitter, but there are some very serious considerations and he is expressing those to the public. I'm sure those who sat on Enron in retirement accounts and were assured all was well would have appreciated an honest head's up as to the state of finances in that company;-)

Personally, I think he said exactly what he needed to and that is that there are things to urge caution, however the fundamentals long term are secure and FDIC is still strong to protect deposits. People in a free nation should have the information they need to utilize that freedom in their financial decisions.

*don't bitchslap me free* :-)

I think Paulson needed to say what he said.  I was making a broader statetment.