Kanjorski compares Paulson to Hoover

WASHINGTON, Nov. 18 (UPI) -- U.S. Rep. Paul Kanjorski, D-Pa., told Treasury Secretary Henry Paulson there is a "crisis of confidence" across the United States that demands action.

During a hearing of the U.S. House of Representatives Committee on Financial Services, Kanjorski compared Paulson's statements that the financial situation had been stabilized sounded a lot like Great Depression-era statements by U.S. President Herbert Hoover.

Paulson bristled at the comparison saying he was very careful in determining the financial situation had been stabilized.

"The intent of the (bailout legislation) was to stabilize the system and prevented a collapse. … When I checked today I was very careful when I said we were turning the corner. I believe we have stabilized the financial system and prevented a collapse," Paulson said.

Paulson said the aim of administration action was to "inject capital into the financial system" and the strategy had worked.