Hank Paulson has not tried to act as crisis manager-in-chief during the credit squeeze, in recognition of the fact that the Federal Reserve – rather than the US Treasury – has the tools to deal with the immediate market liquidity problems and macroeconomic risks.

Instead the Treasury Secretary has played a supporting role, helping the Fed understand and interpret market developments while developing a targeted set of initiatives to help some of the people at risk of foreclosure stay in their homes.