Should We Trust Paulson?

Here are some quotes from Henry Paulson that seem very appropriate given the recent developments:

April 20, 2007 / Dow Close = 12,961
"I don't see subprime mortgage market troubles imposing a serious problem. I think it's going to be largely contained."

July 12, 2007 / Dow Close = 13,861
"This is far and away the strongest global economy I've seen in my business lifetime.”

May 7, 2008 / Dow Close = 12,814
'The worst is likely to be behind us. .There's no doubt that things feel better today than they did in March.'

August 10, 2008 / Dow Close = 11,782
"We have no plans to insert money into either of those two institutions [FNM and FRE]."

September 7, 2008 / Dow Close = 11,510
"In July, Congress granted the Treasury, the Federal Reserve and FHFA new authorities with respect to the GSEs, Fannie Mae and Freddie Mac."

September 19, 2008 / Dow Close = 11,388
"We're talking hundreds of billions of dollars...I am convinced that this bold approach will cost American families far less than the alternative - a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion."

October 8, 2008 / Dow Close = 9,258
"One thing we must recognize - even with the new Treasury authorities, some financial institutions will fail...But patience is also needed because the turmoil will not end quickly and significant challenges remain ahead."