Paulson - I want your money

[Crabtownboy]

Interesting article from the other side of the big pond.

SAVING the world is a thankless task. The only thing beyond dispute in the $700 billion plan of Hank Paulson, the treasury secretary, and Ben Bernanke, chairman of the Federal Reserve, to stem the financial crisis is that everyone can find something in it to dislike. The left accuses it of ripping off taxpayers to save Wall Street, the right damns it as socialism; economists disparage its technicalities, political scientists its sweeping powers. The administration gave ground to Congress, George Bush delivered a televised appeal and Barack Obama and John McCain suspended the presidential campaign. Even so, as The Economist went to press, the differences remained. There was a chance that Congress would say no.

Spending a sum of money that could buy you a war in Iraq should not come easily; and the notion of any bail-out is deeply troubling to any self-respecting capitalist. Against that stand two overriding arguments. First this is a plan that could work (see article). And, second, the potential costs of producing nothing, or too little too slowly, include a financial collapse and a deep recession spilling across the world: those far outweigh any plausible estimate of the bail-out’s cost.

http://www.economist.com/opinion/displaystory.cfm?story_id=12305249

 

[carpro]

Paulson is a piker. He could take lessons from...guess who?:tonofbricks:

Obama wants far more of our money for a longer period of time...

our entire lives.

 

[JPPT1974]

No wonder I am voting for McCain!

 

[Crabtownboy]

No wonder I am voting for McCain!

Obama didn't appoint Paulson, a Republican did.

But that is off track. What did you think of the article from England and what it said?

 

[billwald]

Bull Pippy! The cause is NOT failing house prices. House prices are failing because the banks made bad loans. If I make a bad deal will you all bail me out?

 

[Don]

I hope everyone understands that this bailout means, essentially, that the government will own all those mortgages.

Who needs eminent domain when you already own the property?

 

[billwald]

Same as Joseph ending up owing Egypt.

You all can count on property taxes increasing when the govt takes the repo'd houses off the county tax rolls.

 

[Pastor Larry]

House prices are failing because the banks made bad loans.

I think technically that house prices are falling because banks won't make more bad loans. Or more precisely that people are no longer willing to pay what the current owners paid.

Bad loans don't affect housing pricing. They only affect the ability of current owners to make their payments.