Saturday, October 11, 2008

Because Apparently...

... I have nothing better to blog about.

From Paul Krugman at the New York Times:

...Paulson proposed buying $700 billion worth of “troubled assets” — toxic mortgage-related securities — from banks, but he was never able to explain why this would resolve the crisis.

What he should have proposed instead, many economists agree, was direct injection of capital into financial firms: The U.S. government would provide financial institutions with the capital they need to do business, thereby halting the downward spiral, in return for partial ownership. When Congress modified the Paulson plan, it introduced provisions that made such a capital injection possible, but not mandatory. And until two days ago, Mr. Paulson remained resolutely opposed to doing the right thing.

Which is interesting because Ben Bernanke said:
'There are no atheists in foxholes and no ideologues in financial crises.''
This was while he was trying to convince Paulson a real crisis was at hand. And Paulson was ignoring the facts, in classic Bush appointee style. 

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