So Let It Be Written….So Let It Be Done

As you already know, Hank has issued the final word:

July 31 (Bloomberg) — Treasury Secretary Henry Paulson said he expects the government’s fiscal stimulus plan will boost economic growth in the second half of the year, offsetting a housing downturn and high energy prices.

“While our economy faces substantial difficulties that will continue to be a drag on growth in the short term, it is important to remember our long-term fundamentals are strong,” Paulson said in a speech at the Exchequer Club in Washington today. “I expect our economy to continue growing this year although at a moderate pace.”

The Treasury secretary’s comments followed a report earlier today that showed U.S. growth in the second quarter fell short of economists’ forecasts. Paulson, who promoted a rescue plan of mortgage companies Fannie Mae and Freddie Mac signed into law yesterday, said housing “remains our most significant downside risk.”

Paulson said he expected the $168 billion stimulus package enacted in February “to continue to support the economy in the second half of the year.”

Signals in the housing industry are mixed, Paulson said. Single-family housing starts “look to remain weak through this year” because of bloated inventories, new-home sales “appear to have stabilized” and house prices should begin to recover “in months rather than years,” he said.

This prognostication by the keeper of the treasure chest, plus Cramer’s market bottom call, may end up kickstarting the next bull market—egregiously, with much consternation and confusion.