On “The Bailout”, Part 3: The Treasury Plan needed to fail

The plan initiated by TresSec Paulson needed to fail.

It was a $700billion handout, with little oversight, too much power for the TreasSec. It was being bum rushed through Congress. That’s a terrible way to make law.

The plan that failed on Monday needed to fail too.

Fundamentally, the idea was anti-markets, and anti-capitalism, and anti-American. It was a long-term change, to address a short-term situation.

It shifted the risk from the holders mortgage securities which cannot be valued now to the taxpayers for the benefit of the some of the bad actors.

There are better ways the real problem can be addressed.

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One Response

  1. Take a look at Paulson’s professional biography some time — it’s not exactly a record of success.

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