Sunday, March 16, 2008

Like Sweeping Trash Under The Carpet

U.S. Treasury Secretary Henry Paulson on Sunday tried to allay election-year fears about the economy amid growing market turmoil, saying the government was prepared to do what it takes to maintain stability in the financial system.

Paulson appeared on several Sunday television talk shows to express confidence in the U.S. economy and financial firms after the Federal Reserve moved on Friday to inject capital into Bear Stearns (BSC.N: Quote, Profile, Research), the fifth-largest U.S. investment bank, which ran short of cash to repay its lenders.

Paulson told "Fox News Sunday" the Fed made the right decision to come to the rescue of the investment firm and that maintaining stability in financial markets was a top priority of the government.

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