What if Paulson marketed his plan a differnet way and called it an economic stimulus package or The US home ownership bill instead of a bailout? Nobody seemed to complain about the last stimulus package. That cost the tax payers $150 billion or so which needs to be repaid at some point. Was this ok because it was viewed as a tax refund? Didn't we have to sell treasuries to offshore investors to finance this refund?
One of the main purposes of giving everyone $ then was to put cash in the system to hopefully spur the economy. This bill would also put cash in the system by freeing up the credit markets and allowing borrowing again. Like it or not, the US economy is dependant on the credit markets for a majority of our commerce. No credit = an incredible slowdown. This holds true from the family farmer to the largest corporation.
I am not saying there was no fault with the original plan (no oversight, no accountability, a $ amount randomly pulled out of the air) but, a little forsight in how to present it to the Nation may have been a good thing.
Pete,
Paulson won't guarantee this will even work.
Regardless, what is so wrong with letting the free market work this out?
Not all businesses will go down the tubes, only the weak buinesses who practiced predatory lending and those who knowingly wrote worthless notes to people who could not afford them.
Barney Frank resided over the finance comity, and whats his accountability in this?
The only way I would support this, is with strong accountability. Those folks involved must lose their positions, be removed from holding office. The leaders of the failed businesses must forfeit their bonuses, and give up all their holdings including property and investments.
With out accountability, this is a bail out. There is no other way to spin it.
Obama has to answer some questions about his role in this also. He got a sweet heart loan from Fanny Mae and some large contributions to his campaign, while the company was failing, and he knew it.
Otherwise, I am with most Americans, let the chips fall, and I'll live with the pain. The reason most Americans won't support this bill, is because it smells of bail out, for the CEO's and politicians who let this happen.
