Bush's BubbleheadPosted on Monday, January 7th, 2008 at 6:56pm.
Here's Henry Paulson (via AP), former Goldman Sachs CEO, current Treasury Secretary:
After years of unsustainable price appreciation and lax lending practices, a housing correction is inevitable and necessary.Further, check out Paulson's understated position accepting, in advance, a great amount of bloodletting in the financial markets in the months to come:
As markets reassess, we should not be surprised or disappointed to see financial institutions writing down assets and strengthening balance sheets. This is market discipline in action and should enhance market confidence over time.Quite right, over time we may see confidence return to those markets, as the dust settles. MBC's free opinionator service imagines this settling may really occur in mid-to-late 2009.
But first – if we read between Paulson's lines – don't be surprised if we see a panic, maybe soon.
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