First off 14 Questions for Bernanke and Paulson, not that they will answer them.
Paulson got grilled by the GOP. I wonder if McCain knew that his peers had his back before he decided to suspend campaigning. And it's not clear to me who reached out to whom on this issue. But not to worry, a broad agreement has been reached but you know the devil is in the details.
For an outsider's view see Jerome a Paris' article at The Oil Drum. The Drummers are beating their drums quite loudly. The level of distrust and skepticism is as high as I have seen anywhere. Watch this video if you want a birds-eye view as to why. Could it be King Paulson in the future?
1 comment:
The first question put to Paulson and Bernanke is the most relavent.
These two have been wrong on every call, and these two could see the current situation setting up over the past 6 or 7 years, and did nothing to abate the creation of this massive debt bubble.
I never heard of any economy that waas so completely financialized, or that had such a massive debt overhang, surviving.
The cure promises to only be worse than the disease. It's not enough to collapse our financial system- do we have to drive the U.S. treasury into insolvency as well?
The bailout agreement is being made very hastily by people who have proved that they cannot run our economy, and they are admitting that it is very risky, and that they do not know if it will solve the problem.
We've already taken enough risk,and we've already put the government- the taxpayers, on the hook for enough. This plan is much, much too risky, and could render our government incapable of servicing its debt- we already pay $500 billion a year in interest on existing government debt.
The Chase-Wamu deal is about the best that can be arranged, and we can only hope that something similar is arranged for other failures that are about to happen. Wachovia is probably next, and that is the largest financial holding company in the country.
The taxpayer bailout is a huge mistake, and the plan should be scuttled.
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