The New York Times quotes Henry Paulson as saying that despite recent events, Americans can “remain confident in the soundness and the resilience of our financial system.”
On the one hand, I think that he's factually correct in the long run: our financial system isn't likely to completely fail us, and there will be better days ahead.
On the other hand, he's trying to manage consumer confidence, and it strikes me as a hard sell to tell the average American that despite the declining value of his or her home, stock portfolio and retirement savings, declining real income, and increasing unemployment, they should be confident and go spend those greenbacks, since that's the cure to the problem.
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1 comment:
I think he's trying to manage perception. It's panic that's seizing up credit markets, and right now that's way more dangerous than a drop in consumer spending...
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