Paulson Says to Investors – This Too Shall Pass
Waking up this morning and turning on “Good Morning America,” we heard a new familiar voice. Treasury Secretary Henry Paulson spoke up about the economy stating, “This will take time. There will be challenges.” It’s funny how most people never really knew who he was or what type of power he wielded until this economic downturn started to take place. President Bush, Paulson and Fed Chairman Ben Bernanke are all calling out to reassure anxious Americans that relief will come.
“Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away,” Bernanke said in a speech to the Economic Club of New York. Retail sales numbers fell again for the third consecutive month, illustrating that consumers are pulling back and conserving their resources.
The markets, much like the retail industries, are cyclical. So if you draw the timeline out long enough, things get back to where they once were. President Bush commented on this cyclical nature of things in a meeting with his Cabinet, saying that he’s confident that “in the long run, that this economy will come back.”
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