Keynes, when so accused, is reported to have said:
“When the facts change, I change my mind --- what do you do, Sir?”
Paulson could have used the first part of this quote in preference to his much criticized (but still intelligent) statement:
"I will never apologize for changing an approach or strategy when the facts change."
"Bank failures are caused by depositors who don't deposit enough money to cover the losses due to mismanagment."
--- former Vice-Presidential Candidate Dan Quayle, recently quoted by George Cooper (p. 39, of The Origins of Financial Crises).
“The risk of ending up like Japan, with 10 years of stagnation, is now much lessened. The recession train has left the station, but it’s going to be 18 months instead of five years.” --- Nouriel Roubini, an NYU economist, quoted in the NYTs, 9/21/08.
"We have entered a period of risk aversion unlike anything we've seen in our lifetime. Investors will be too wary for a while. You'll read stories about people who got rich betting against subprime mortgages and then about people who combed through the wreckage and found bargains. The next rich wave will be those who figure out where the value is. As for the average American investor, he'll be a deer in the headlights for years. It will be a while until greed gets comfortable again."