U.S. Treasury Secretary Henry Paulson: even in the storms of the Asian financial crisis.

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Hearing, according to the British "Financial Times" reported that the U.S. Treasury Secretary Henry Paulson has warned that the current subprime crisis in the credit market triggered a crisis of confidence, than in the past 20 years .any one financial shocks have a long duration, echoed last week, former Federal Reserve Chairman Alan Greenspan's view, the latter said that the current market turmoil and hedge fund Long Term Capital in 1998 and the 1987 stock market crash when the crisis situation is almost exactly the same. .</ P> <P> However, Paulson is still stressed that the U.S. economy could ride out the subprime mortgage crisis, but he also warned that Congress impose sanctions on China at this time to promote the bill, will only make the U.S. economy has been in crisis .and financial market worse. .</ P> <P> subprime mortgage crisis could continue for years </ P> <P> According to reports, Paulson pointed out the duration of the credit market turmoil in the last century, President of the Russian debt crisis of the 90s and the Asian financial crisis .and 80s of last century the Latin American debt crisis. .He said that judging by his personal experience, this subprime storm intensity and duration will be better than the previous two financial crises, and to quell a crisis like this there is no "quick fixes", the market turmoil is expected to last longer. .</ P> <P> Paulson believes that the crisis center in derivative financial products complexity and extensive, may prolong the duration of the credit crisis. .Experts believe that if Paulson that the U.S. authorities expect the current credit market turmoil will last about two years, that is, to re-arrange the approximate duration of subprime mortgages. .</ P> <P> Paulson said: Compared with the past, now take longer to digest because of the crisis, more globalized. .He said that the U.S. mortgage has been "split", appeared in Germany at the state level regional bank account. .Another reason is the complexity of these products, Paulson said. .He pointed out that they have met with some bankers, from whom they learned that the pricing of subprime mortgage securities market remains difficult, mainly because it difficult to judge the value of asset-backed securities. .</ P> <P> Paulson said the U.S. government is investigating the three major rating agencies in the subprime crisis worsening in the role. .According to reports, the International Securities Organization (IOSC) is the U.S. rating agencies convened a meeting in Washington, rating agencies were asked to explain how they IOSC mortgage asset-based structured product ratings. .The idea that credit rating agencies for high-risk mortgage-backed securities rating is not responsible for misleading investors. .</ P> <P> sanctions will only hurt China's own </ P> <P> risks while at the prompt, Paulson has repeatedly emphasized that the U.S. economy to ride out the crisis, but he also warned that the Congress .taken a number of economic and trade sanctions against China, would only have been struggling with the subprime crisis hurt the U.S. economy. .</ P> <P> Paulson told "The New York Times" interview, warned that Congress enacted for the Chinese economic and trade policy practice of punitive bill could endanger America's future economic growth, and may have been disrupted due to "sub- .credit crisis "facing serious difficulties of the U.S. market. .</ P> <P> Paulson reiterated that the U.S. economy has enough resilience to ride out the current subprime mortgage crisis. ."I do think the U.S. is at a turning point. When the United States to other countries seeking to take unilateral action, this will be their own economic interests of the United States a tremendous impact. We are playing with fire." Paulson said. .He further pointed out that China take unilateral punitive action could lead to trade war could disrupt the U.S. market, is very dangerous and could pay a "loss of China, the major U.S. export market," the great price. .</ P> <P> It is reported that Paulson had with the U.S. economic and trade circles, especially from the financial, manufacturing and automobile industries were the main person in charge of negotiations. .Paulson said the U.S. economic and trade circles of these dignitaries are on the U.S. Congress proposed a bill on China worries. .The proposed bill requires that China allow the yuan to appreciate faster, otherwise, the United States will impose tariffs on Chinese products or the implementation of other punitive measures. .The trade sector is concerned that this bill would lead to China's retaliatory action. .</ P> <P> 5th of this month, the U.S. House of Representatives passed a rare and symbolic resolution calling on China's financial services sector fully open to U.S. companies and U.S. banking regulators urged the Chinese companies in the U.S. audit .operating permit, the words "China is in the same area restrictions on American business," this factor into account. .The industry believes that the resolution passed the House of Representatives the same day, a time when several regulatory authorities in the country held a special hearing in Congress to discuss the recent market turmoil and the subprime crisis, a move the U.S. Congress has its own internal problems to "move the crime" China .is suspect. .</ P>.