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View Diary: BREAKING & W.T.F.!? Paulson's bait and switch (Updated) (99 comments)

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  •  Krugman and Soros (12+ / 0-)

    think capital infusions are much better than buying bad assets.  This is an improvement to the original plan.

    "What we've seen the last few days is nothing less than the final verdict on an economic philosophy that has completely failed." -- Barack Obama

    by TomP on Wed Nov 12, 2008 at 11:00:35 AM PST

    •  that very well can be, so (5+ / 0-)

      explain it to Congress and why they went the wrong way in the first place. They are the ones who kepts telling us time was of the essence.

      Using my free speech while I still have it.

      by ebgill on Wed Nov 12, 2008 at 11:02:12 AM PST

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    •  That may be true (6+ / 0-)

      However the way things are playing out sheds light upon the lie that it was a huge emergency to begin with.

      I'll also note the Dow isn't any better than it was when the bailout was approved, but I find it interesting now that the government is basically giving banks money with no strings attached the banks are starting to have a change of heart towards homeowners in trouble. If I didn't know better I'd say the banks were holding their mortgage holders hostage to get what they wanted from the government.

      So many impeachable offenses, so little time... -6.0 -5.33

      by Cali Techie on Wed Nov 12, 2008 at 11:05:35 AM PST

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      •  I don't think it shows the (1+ / 0-)
        Recommended by:
        johnny rotten

        emergency was a lie or not.  Capital infusions were favored by Krugman and Soros for many reasons, including that they worked faster.

        I think Obama will make improvements to the implemetation of TARP.  We need a new New Deal also.

        "What we've seen the last few days is nothing less than the final verdict on an economic philosophy that has completely failed." -- Barack Obama

        by TomP on Wed Nov 12, 2008 at 11:14:19 AM PST

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        •  We'll have to disagree on that (2+ / 0-)
          Recommended by:
          two roads, Ann Hedonia

          Paulson and co. were adamant that if Congress didn't pass a bailout right then and there civilization and the world as we knew it would cease to exist. They ran around shouting "NOW NOW NOW!" like their hair was on fire. Now that they have it, it turns out the emergency wasn't really all they said it was and that they didn't really have to buy up all those assets after all.

          The whole point of buying the assets was to get more money into the banking system while relieving the banks of the burden of having "worthless" assets on their books. It turns out that maybe the assets weren't worthless after all and the banks don't really want to get rid of them. They just wanted money for nothing and that's exactly what they got. Yes the government gets warrants for equity in the banks, but if the bank goes under those warrants are worthless and the taxpayer is left holding the loss with nothing to show for it. At least if the government owned the mortgage backed securities, we would still have them regardless of whether or not the banks failed.

          We've been baited and switched and as a result we're even more exposed to risk than under the original plan, which was risky enough.

          Bush, Paulson, and all the other "geniuses" who got us into this mess can't be gone fast enough for me.

          So many impeachable offenses, so little time... -6.0 -5.33

          by Cali Techie on Wed Nov 12, 2008 at 12:05:58 PM PST

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    •  The point is... (14+ / 0-)


      ...this is not the plan which was voted on.

      Or to put it another way... the original plan was portrayed as desperately needed. No contradictory testimony or alternative plan was allowed. We were told we had no choice other than to pass this plan.

      Now it has morphed into something completely different but still without testimony or a new vote. The excuse still being that we have no choice but to accept this new plan.

      Where is the oversight? Where is the accountability? And most important, who's really feeding at the trough of the $700,000,000?

      You may trust that Paulson and the powers that be are acting in our interests. I never did, and still don't.

      The fact is that the average man's love of liberty is nine-tenths imaginary, exactly like his love of sense, justice and truth. - H.L. Mencken

      by two roads on Wed Nov 12, 2008 at 11:08:59 AM PST

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      •  Authority for it (2+ / 0-)
        Recommended by:
        johnny rotten, RadioGirl

        was in the plan.  

        "What we've seen the last few days is nothing less than the final verdict on an economic philosophy that has completely failed." -- Barack Obama

        by TomP on Wed Nov 12, 2008 at 11:14:41 AM PST

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        •  Authority for it was in the plan... (2+ / 0-)
          Recommended by:
          viscerality, WattleBreakfast


          ...for which no contradictory testimony or alternative was allowed. Because it was an 'emergency'.

          And are you pretending that the buying of toxic assets -- now abandoned -- wasn't the thing that had to be done according to Paulson, Pelosi, Reid, et al.?

          The fact is that the average man's love of liberty is nine-tenths imaginary, exactly like his love of sense, justice and truth. - H.L. Mencken

          by two roads on Wed Nov 12, 2008 at 11:26:14 AM PST

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    •  What does capital infusion mean? (1+ / 0-)
      Recommended by:
      two roads

      Who gets the capital? Is it a loan? I'm confused.

      Is this socialism?

      Why does Paulson want to make it easier for people to go further into debt?  Isn't that what caused the problem to begin with?

      Let's all go back to trading with beads and shells.

      They don't flag, ya know, the molecules

      by Ann Hedonia on Wed Nov 12, 2008 at 01:03:28 PM PST

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