Fundamentalism

He would say that, wouldn't he? But out of which side of his mouth?

US Treasury Secretary Henry Paulson said the markets' 416-point drop on Tuesday did not reflect any fundamental problems with the US or global economies:

Asked about a week in which US stocks suffered a 416-point drop on Tuesday following big market declines in China and other countries, Paulson said that the volatility did not reflect any fundamental problems with the US or global economies.

In a slightly differenct context, world currency movements, we find Paulson, head of Goldman Sachs and the US Treasury, saying the same thing: The yen slipped broadly on Tuesday after U.S. Treasury Secretary Henry Paulson said the Japanese currency's value is set by fundamentals.

So, when markets are dicey, there's no need to worry, because the economic fundamentals are sound. You may get killed in the market, but, hey, that's no cause for alarm. Says Paulson,

"Markets at any one time don't necessarily reflect the economic fundamentals," he said. "As long as you have markets, you're going to have volatility.".

Of course, economics rarely reflect market fundamentals, either. As long as you have economists, you're going to have two sides of your mouth to talk from, especially if you can't talk without using your hands: "on the one hand,....."