Paulson: 'Objectionable' decisions will save markets
Treasury Secretary Henry Paulson said his actions bailing out some US companies to help strengthen capital markets, while "objectionable," were necessary to prevent a deeper collapse of the global economy.
"Some of the things that I've been part of have been very, very objectionable decisions, but they haven't been difficult decisions because the alternative would be much worse," Paulson said yesterday, responding to questions after a speech in Washington. "I've looked at some of the things I've done as being essential to preserve the free market system."
With less than two months to go until the end of the Bush administration, Paulson defended his programs for unfreezing credit markets and aiding banks. He said the department is also considering using funds from the $700 billion rescue package passed in early October to help homeowners facing foreclosure.
Also yesterday, President Bush expressed remorse that the global financial crisis has cost jobs and harmed retirement accounts and said he'll back more government intervention, if needed, to ease the recession.
"I'm sorry it's happening, of course," Bush said in a wide-ranging interview with ABC's "World News," which was airing yesterday. "Obviously I don't like the idea of people losing jobs, or being worried about their 401(k)s. On the other hand, the American people got to know that we will safeguard the system. I mean, we're in. And if we need to be in more, we will."
As he leaves office, Bush said he felt responsible for the economic downturn because it's occurring on his watch, but he added: "I think when the history of this period is written, people will realize a lot of the decisions that were made on Wall Street took place over a decade or so" before he became president.
He said he would like to see "instant liquidity" in the markets, given the extent of the financial rescue plan, yet he understands that fear has paralyzed the markets. 