The Value of Talks

U.S. Treasury Secretary Hank Paulson says there's no doubt oil prices are a problem.He attributes them to supply and demand factors.You're going to get volatility with tight supply.It can only be good news to talk about it with the Saudis.That's a productive idea.We have not had the investment we need in new production and alternate sources.It's always of great value to talk to other policymakers around the world.That builds up a level of trust so we can call each other,Mr.Paulson explained.As for the financial crisis,regulation needs to be updated to catch up with hedge funds.Clearly the Federal Reserve needs greater visibility and authority with investment banks,given the new lending facility for the banks.There's a role for market discipline and moral hazard.When assets are being revalued,you're going to go through times like this,Mr.Paulson observed.