Treasury Secretary Paulson proposes that you and I pony up a few hundred BILLION dollars . . . maybe even a TRILLION dollars to achieve some unexplained goal with unexplained consequences. So I’m not sure that Paulson even has a pig in his poke, with or without lipstick on it.
Oh, he says it’s to save our financial system. What does that mean specifically? Well, he also says he wants to buy up bad mortgage paper so lenders can free up capital to make more loans. Krugman calls it “Cash for Trash.” Next, Paulson wants this authority and money in a few days. This credit crisis has been developing for years. Where were our leaders for the past few years? What were they doing? Let’s take a month or so to see what’s really in Paulson’s Poke. Let’s put different and better and cheaper ideas up for discussion.
Paulson led the bond-trading firm of Goldman Sachs. Debt is his specialty, i.e. his “hammer.” Remember, “When the only tool you have is a hammer, everything begins to look like a nail.”
Here are the best columns I read.
Related Links:
) Paulson Bailout Plan a Historic Swindle
By William Greider
September 19, 2008
http://www.thenation.com/doc/20081006/greider
) Fair Game — Your Money at Work, Fixing Others’ Mistakes
By GRETCHEN MORGENSON
September 20, 2008
http://www.nytimes.com/2008/09/21/business/21gret.html?_r=1&scp=2&sq=morgenson&st=cse&oref=slogin
) John McCain: Crisis Enabler
By Mark Sumner
September 21, 2008
http://www.thenation.com/doc/20081006/sumner/1
What oversight exists? Paulson originally wanted regal no review/accounting. Scary.–ML
However, I am sorry the amended bailout failed; I agree with David Brooks and his column in NY TIMES 9-30-08. Our Congress is a fragmented bunch of non-leading losers.–Mike L.
As ‘W” era comes to an end it is Gordon Brown and the EU that find it necessary to provide the leadership. The financial meltdown is a fitting end to the Bush legacy. Bush’s latest remarks are that we should continue with the financial system, as it is the best we have. I think not; let’s come up with something that doesn’t have to create winners and losers.