The Paulson Problem

Here is the Paulson Problem in a nutshell:

• If he doesn’t speak, people panic because nothing is improving in the financial system
• If he does speak, people assume things are getting worse in the system, or that Paulson is doing a 180 on a prior plan (like TARP-to-equity-injection).

Paulson is rapidly losing whatever credibility he once had.

Related posts:

1. The Paulson Plan, or Why Do We Regulate Banks Anyway?
2. Paulson to Time: We’ll Get a Bill
3. Why Paulson Doesn’t Want Preferred, or Turning Japanese
4. Dr. Strangelove, Paulson, and the Face-Slap Theory
5. The Other Paulson Plan