Right or wrong, Treasury Secretary Paulson's shifting strategies put his most valuable asset--his credibility--at risk.
On Friday, Sept. 19, Treasury Secretary Henry Paulson marched into the Treasury Department's media room and announced he needed several hundred billion dollars to save the financial system by buying "troubled assets." Markets soared.
Wednesday, Paulson traipsed in again and said the $700 billion that Congress granted him will not be used to buy troubled assets after all, but rather to shore up troubled companies by taking equity stakes, among other things. "Our assessment at this time is that this is not the most effective way to use TARP funds," Paulson said.
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