Paulson Says US Economy Has 'Turned Down Sharply'

i think its worth a 400% short position today, what do you think? ----------------------- CNBC Paulson Says US Economy Has 'Turned Down Sharply' Thursday April 10, 10:21 am ET The U.S. economy has "turned down sharply" and is at risk for further weakening, US Treasury Secretary Henry Paulson said. But in a speech in Washington, Paulson said the fiscal stimulus checks that will go out to Americans soon will have a real impact on the economy. Paulson also said that a commitment by housing finance companies Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) to raise additional capital was critical in efforts to help the ailing mortgage market. "That's very, very important, " Paulson told the Council of Institutional Investors. "What they do here is going to be more important than a lot of things that are being considered by Congress right now. It's very important that they continue to play an active role." Paulson also called it a "disgrace" that there hasn't been any legislation to reform oversight of Fannie and Freddie. And he said financial institutions shouldn't look to government to raise capital but should raise it on their own. Paulson's remarks echoed those he made a week ago in Beijing, when he said the US economy had taken a sharp turn for the worse and is facing a tough quarter. "There is no doubt we're having a tough quarter, that the economy has turned down sharply," Paulson said. But he said a swoon in the housing sector, which was largely to blame for the rough patch, was necessary. "We need to have this correction. It's not pleasant, but we need to have it," Paulson said in reference to declining U.S. house prices and homebuilding.

i think its worth a 400% short position today, what do you think?



-----------------------
CNBC
Paulson Says US Economy Has 'Turned Down Sharply'
Thursday April 10, 10:21 am ET

The U.S. economy has "turned down sharply" and is at risk for further weakening, US Treasury Secretary Henry Paulson said.

But in a speech in Washington, Paulson said the fiscal stimulus checks that will go out to Americans soon will have a real impact on the economy.

Paulson also said that a commitment by housing finance companies Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) to raise additional capital was critical in efforts to help the ailing mortgage market.

"That's very, very important, " Paulson told the Council of Institutional Investors. "What they do here is going to be more important than a lot of things that are being considered by Congress right now. It's very important that they continue to play an active role."

Paulson also called it a "disgrace" that there hasn't been any legislation to reform oversight of Fannie and Freddie.

And he said financial institutions shouldn't look to government to raise capital but should raise it on their own.

Paulson's remarks echoed those he made a week ago in Beijing, when he said the US economy had taken a sharp turn for the worse and is facing a tough quarter.

"There is no doubt we're having a tough quarter, that the economy has turned down sharply," Paulson said.

But he said a swoon in the housing sector, which was largely to blame for the rough patch, was necessary.

"We need to have this correction. It's not pleasant, but we need to have it," Paulson said in reference to declining U.S. house prices and homebuilding.

What happening right now is that investors think the worst has been priced in. so all the bad news get ignored and "not so bad" news are seen as positive. I personally think we are far away from bottom, but it may take time for market to start next leg down. FYI, I am 100% short.

I'm just trying to get used to your new personality. J

And Atilla, I'm JK BTW. You've taken a lot of heat here which still baffles me. You're a fresh thinker and a kind person. I hope you knock the cover off this one.

J

I'm just trying to get used to your new personality.

J

And Atilla, I'm JK BTW. You've taken a lot of heat here which still baffles me. You're a fresh thinker and a kind person. I hope you knock the cover off this one.

J

I'm just trying to get used to your new personality.

J

As usual I got the sentimental heat at the bottom but its worth more than anything you can spend for a market edge.