More on Paulson

On January 18, speaking about the proposed “short term growth package” - neither the White House or any members of the Administration called it a “stimulus” until it was signed into law - Paulson asserted “the long-term fundamentals of the economy are strong, and I believe our economy will continue to grow.”
At the end of July, the Bureau of Economic Analysis reported the U.S. economy did not grow, but actually shrank during the first quarter of this year.

At the end of January, Paulson was pushing the “growth” package, which included tax rebates and told the Real Estate Roundtable it “is expected to help create more than half a million jobs by the end of 2008. We know from experience that both immediate tax relief for income tax payers and incentives for businesses to invest and hire are effective in creating growth and jobs in the short-term.”
The bill was passed in February, and the first rebates were distributed at the end of April. But, in the seven months since Paulson’s forecast, instead of creating “more than half a million jobs,” the U.S. economy shed 529,000 jobs.

On January 7, Paulson spoke about housing and capital markets in remarks to the New York Society of Securities Analysts about the growing problems confronting homeowners. “To meet this challenge,” he said “this Administration - without committing any taxpayer money - helped foster an industry-wide effort to prevent this market failure. By preventing avoidable foreclosures, we will safeguard neighborhoods and communities, and fulfill our primary responsibility of protecting the broader U.S. economy.”
When Paulson offered these remarks, the national foreclosure rate, according to RealtyTrac was one for every 534 homes; in August the foreclosure rate was one per 416 homes.

But, he said, “fortunately, credit-worthy borrowers looking for a conforming mortgage will find that Fannie Mae and Freddie Mac have remained active, and traditional conforming mortgage products are readily available. Fannie and Freddie's securitization volumes have risen dramatically since June of 2007, even as other mortgage markets slowed. However, they are also experiencing stress due to the housing downturn and both companies reported substantial third quarter losses. I am pleased that Fannie and Freddie have moved quickly to raise capital and, through their securitization activities, remain a positive force for home finance.”
In September the Treasury (and the Federal Reserve) used legislative authority granted in July to nationalize Freddie Mac and Fannie Mae.

Paulson told the National Association of Business Economists in March “many in Washington and many financial institutions have been floating proposals for a major government intervention in the housing market, with U.S. taxpayers assuming the costs of the riskiest mortgages. Today, 93% of American homeowners -- 51 million households -- pay their mortgages on time. Many are on tight budgets, sacrificing other things in order to make that payment. Only 2% are in foreclosure. Most of the proposals I've seen would do more harm than good - bailing out investors, lenders or speculators who, instead of getting a free pass, should be accountable for the risks they took. Let me be clear: I oppose any bailout.” The problem, he said, was limited to subprime ARM borrowers.
According to the Mortgage Bankers Association National Delinquency Survey, the percentage of all prime loans past due increased.

Paulson in March said adjustable rate mortgage borrowers benefited from “the recent decline in short-term interest rates, which are very significantly mitigating the effects of mortgage resets.”
On March 3, when Paulson spoke, the interest rate for the 10-year Treasury - the benchmark rate for the 30-year fixed rate mortgage - was 3.54%; on Sept. 22 it was 3.81%.

Bottom line - this bozo hasn't been right about anything since he became SecTreas. Why should we trust him with $700 billion of our money that he said he didn't even need just a month ago. Screw him and the horse he rode in on, and screw President Bush for not firing him already.

Source: http://www.foxbusiness.com/story/markets/economy/paulsons-track-record-strong-facts/