Paulson’s Non-Answer Answer
This morning we ran a piece from our finance reporter Mary Kane on how the Bear Stearns deal struck a nerve with housing advocates who have been calling for more oversight of investment banks selling risky mortgage products. And now today Treasury Secretary Henry M. Paulson Jr. indicates that investment banks will have to begin providing more information if they are going to be making withdrawals from the discount window of the Federal Reserve Bank.
But as for the any idea about how long before this housing mess would start to get better — his non-answer was masterful.
As quoted in The New York Times:
Mr. Paulson said he was basically optimistic about the economy, and was convinced that the housing market would one day right itself. “I am constantly asked how much longer will this take to play out, and if this is the worst period of market stress I have experienced,” he said. “I respond that every period of prolonged turbulence seems to be the worst until it is resolved. And it always is resolved.”