Paulson proves BushCo loyalty by willingness to lie

The latest whopper? That we’re past the worst of the credit crunch. In a narrow sense, vis-à-vis investment banks, that may (or may not) be true. As for small biz and residential mortgage credit, not even close.

Lie No. 2 in the same story?

“Later this year, I expect growth will pick up.”

Followed by a self-undercutting:

“Even the optimists here believe that you’re going to continue to see in the next several months” newspaper headlines that will say prices have declined even further and foreclosures have increased, he said. “That’s what happens during a correction.”

So… “several months” — wouldn’t that be well into “later this year”?

And, I guess it’s not that bad if we’re just in a “correction” and not a “recession.”