January 7, 2007 (LPAC)--Treasury Secretary Henry Paulson, in a speech delivered to the New York Society of Securities Analysts, declared that the large write downs of mortgage-backed paper, that have occurred in recent weeks, rather than being huge losses showing the bankruptcy of the global financial system, actually show that the system is working. "This is market discipline in action and should enhance market confidence over time," Paulson claimed.

President Bush delivered an even more lunatic speech to the Illinois Chamber of Commerce, today, in which he declared that the best thing Congress can do for the economy is "keep taxes low."