What We Can Learn from Paulson’s Leadership

Treasury Secretary Henry Paulson has stepped up at the right time not only to inject much-needed liquidity into the financial system, but also to restore confidence throughout global markets.

Paulson has been instrumental in leading a global effort to avert a complete implosion of the global financial system. The unprecedented move in the stock markets yesterday — including the Dow Jones — are a testament that the extraordinary measures by the Treasury, Federal Reserve and FDIC, among other agencies, over the last month have been working to restore confidence in the system.

While many Americans object to Paulson’s efforts as a way to protect friends on Wall Street, it was on Wall Street that he gained an invaluable understanding of the markets, their mechanics, and the dynamics within. We should have greater confidence in his leadership because it is his real-world experience that has enabled him to bring meaningful solutions to the system and provide leadership within the global community.

In fact, it is his mastery of the markets that is in stark contrast to many members of Congress who have testified on the economic matters but clearly do not understand the speeches on this subject that have been prepared for them. House Speaker Nancy Pelosi’s (D-Calif.) recent comments have made it clear that she is more interested in her political positioning than understanding what she is saying about the financial market collapse.