Financial turbulence will perist but global economy strong: Paulson

0 Comments | AFP, September, 2007

PARIS (AFP) — The current turmoil on financial markets will persist for a while longer but the overall global economy remains healthy, US Treasury Secretary Henry Paulson said here Monday.

"Although this will be with us for a while -- it will take a while to work through this turbulence in the capital markets -- we are doing so against a backdrop of a strong global economy," Paulson told journalists following a breakfast meeting with French Finance Minister Christine Lagarde.

He said the credit crisis, which is now threatening the life of British lender Northern Rock, was caused by bad lending practices rather than any serious weakness in the broader economy.

"We are already seeing modest reductions in the strains in some markets," he said, "... against a...