Paulson told The Wall Street Journal 2 million Americans are in jeopardy of foreclosure this year, up from a standard average of 650,000 foreclosures a year.

But, the housing market is partly self-correcting, he told the Journal. As the supply of houses on the market increases, prices will fall and more buyers will step in.

It will take some time for the correction to unfold, he said, telling the Journal prices would probably hit bottom in 2009.

But, he said many of the solutions to the housing crisis amounted to corporate bailouts.

"I'm seeing a series of ideas suggested involving major government intervention in the housing market and these things are usually presented or sold as a way of helping homeowners stay in their homes.

"Then, when you look at them more carefully," he said, "what they amount to is a bailout for financial institutions on Wall Street."