Paulson Optimistic About Measures Taken To Contain Foreclosures

October 27th, 2008 | Tags: Foreclosures

Today the secretary of the treasury, Henry Paulson is the most powerful figure in USA. He was speaking to the National Committee on USA-China Relations at The Plaza, New York. Paulson aired his optimism about the measures being taken to contain foreclosures. He also wanted the establishment of close ties with China to make the economy of the country strong. Paulson was honoured at the annual dinner meet of this non-profit body for his endeavours in promoting amity between the two countries. The press were kept confined to the balconies and not allowed to directly communicate with the participants.

Paulson explained that the view of those who think that China is a threat must be changed. In his speech lasting ten minutes he said’ “I believe that the only path to success with China is through engagement. We must recognize that China’s growth is an opportunity for U.S. companies and consumers, for our producers, exporters and investors.” Paulson stressed on strengthening of ties between the two countries through Strategic Economic Dialogue. American President Bush and Chinese President Jintao had made the start in 2006. It was a case that highlighted the fact that sparring super powers can rise above petty politics.

Against the background of the foreclosure crisis America’s tilt towards China is very important. The foreclosure meltdown led to the busting of many banks. China has invested heavily in these mortgaged securities. China exports heavily to USA. It is to China’s interest that the American consumer starts buying again. The foreclosure crisis has highlighted the fact that America owes heavy amounts to China.

Referring to the prevailing foreclosure crisis Paulson added, “Some in China look at the recent failures in our financial markets and conclude that they should slow down their reforms. But there is a great opportunity for China to learn from our significant mistakes and move forward with reforms that have the potential to produce important gains for China and its people.”

While focusing on China, Paulson also spoke of greater cooperation between international governments so as to avoid the mistakes of the past being repeated.

Paulson did not dwell upon the mistakes that led to the foreclosure crisis but said in short that the necessary steps are being taken to remedy the failure, pop up the financial bodies and reduce the negative effects on the market to the lowest level. To do so a “multitude of powerful actions are being taken.”