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

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  •  We'll have to disagree on that (2+ / 0-)
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    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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