The Wonk Room notes Hank Paulson’s disturbing habit of proclaiming that everything is fine just before some new piece of terrible news hits. Just last week he said “the banking system has been stabilized.” Now Citigroup is on the verge of collapse.
And yet for some reason some keep feeling that Paulson is worthy of things like gushing Washington Post writeups. It’s frightening to consider the implications of the fact that the Secretary of Treasury doesn’t seem to know what he’s doing. But just because it’s frightening doesn’t mean we need to be in denial about it.