(US) TREASURY’S PAULSON: US HOME PRICES WERE UNSUSTAINABLE, CORRECTION WAS "NECESSARY, INEVITABLE" - CNBC INTERVIEW
- Sees favorable news on housing inventories.
- Reiterates that a strong dollar is in the interest of the US economy, and strong economic fundamentals will be reflected in the dollar
- Foreign direct investment in the US should be welcomed
Paulson says home prices were unsustainable: Did he know that before or after he helped to sell bundled mortgages to investors when he was at Goldman Sachs? C’mon, Hank, you can’t tell America you were too ignorant to understand the housing market back then, and now you are smart enough to fix what ails it.
Also, he says strong economic fundamentals will be reflected in the dollar: Then can we assume at the moment that economic fundamentals stink, as the dollar keeps getting weaker? And just exactly WHEN do you expect strong fundamentals to be reflected in the dollar, Hank? You’ve been talking about a strong dollar for a long time and yet, we still don’t see the improvement. It’s time for some action, and bless your little heart, Hank, the best action would be for you to get out of the way!
