In my ongoing efforts to document our Treasury Secretary and his "Clap Louder" message, here's our newest installment. (I'm quoting this more than I probably should because this only shows up on y!, and they are notorious for expiring stories.)

Our boy, Hank "Subprime is Contained" Paulson tells us today, and I quote the headline, that: " Paulson says economy should dodge recession"

Admittedly, the headline is not substantiated by the text of the article, but I'm quoting this for posterity.

WASHINGTON (Reuters) - The United States is experiencing a "significant" housing market downturn but the economy is fundamentally sound and should avoid recession, Treasury Secretary Henry Paulson will tell Congress on Thursday.
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"The U.S. economy is fundamentally strong, diverse and resilient, yet after years of unsustainable home price appreciation, our economy is undergoing a significant and necessary housing correction," Paulson said in remarks prepared for delivery at a congressional hearing, obtained by Reuters on Wednesday.

"The housing correction, high energy prices, and capital market turmoil are weighing on current economic growth," he said. "I believe that our economy will continue to grow, although its pace in coming quarters will be slower than what we have seen in recent years."