Portfolio manager Axel Merk discusses Paulson's revision to the $700 billion bailout with MarketWatch, Reuters, US Today & The Wall Street Journal.
MarketWatch
Portfolio Manager Axel Merk tells Marketwatch that market participants were frustrated with Paulson's communication skills
"Alex Merk, president of Palo Alto Calif.-based Merk Investments, a mutual-fund firm, said that market participants were frustrated with Paulson's communication skills and changing tactics.
'He's been flip-flopping on every plan and it doesn't look like he has a plan,' Merk said in an interview.
According to Merk, the rescue plan is failing to get banks to lend money, and that holders of mortgage assets who had been hoping to sell to the government at a good price have now seen these hopes dashed.
Earlier Wednesday, federal bank regulators issued a joint statement jawboning banks to start lending money to consumers. But Merk said that there are many factors that are making banks hoard capital.
'They don't trust their own balance sheets, and why lend to consumers when the consumer sector is going down the drain?' he commented.
Markets are also looking beyond Paulson to the Obama administration, which is likely to be much more focused on helping consumers and homeowners -- putting some of Paulson's plans at risk, Merk added. "
Reuters
Portfolio manager Axel Merk tells Reuters that Paulson has realized asset prices must be allowed to clear.
" 'It looks like Paulson has realized asset prices must be allowed to clear,' said Axel Merk, chief investment officer at Merk Investments in Palo Alto, California. 'But while we agree that this is the right thing to do, it may be more of a reflection that his days at the Treasury are almost over.' "
The Wall Street Journal
Paulson's report card doesn't look good, portfolio manager Axel Merk tells The Wall Street Journal.
'For now, Paulson has managed to get Congress upset while being unable to get credit flowing again,' grumbles Axel Merk, president and chief investment officer at Merk Investments."
USA Today
Policy makers must provide clarity portfolio manager Axel Merk tells USA Today.
"Congress and the administration 'don't seem to have a grasp of what works and what doesn't,' says Axel Merk, president of Merk Investments, a mutual fund management company in Palo Alto, Calif. 'If the government changes the rules every day, how are you supposed to make an investment decision?' "
Reuters
Portfolio manager Axel Merks talks with Reuters about the publics perception of Paulson.
" 'Public perception is that (Paulson) gave hundreds of billions to his buddies at financial institutions while nothing to consumers,' said Axel Merk, president of Merk Investments."
