Paulson defends govt. intervention

October 15, 2008 4:54:10 AM PDT
Treasury Secretary Henry Paulson says he expects improvement in the condition of the economy over time but that there will be "a bump in the road" along the way. [CHECK THE MARKETS: Get the latest numbers from Wall Street]
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Paulson said Wednesday that the government's decision to buy into the nation's banking system with a $250 billion investment in nine large banks at the outset should stabilize the financial system and loosen the tight credit market.

The secretary was interviewed on ABC's "Good Morning America." He acknowledged that he initially opposed government intervention into the banking industry but that new facts changed the circumstances in recent days.

Paulson said, "There's no doubt that the way to get the maximum bang for the taxpayers here was to invest in banks."

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