Wednesday, October 1, 2008

An inside analysis of the Paulson plan (preserved in the current Senate version)

The bailout's supporters are doing everything they can to get it passed.

Meanwhile, for an in-depth illustration of how much the Paulson plan blows and how scandalous it is, click this post's title; read as much or as little as you want. Not only are the Democratic "reforms" less than window-dressing, it probably won't even work. Not like the government backing up the nation's mortgages would, anyway, or the government directly infusing capital into banks and taking an equity stake in return (an idea George Soros is pushing).

There has to be an alternative to this plan for which opponents can muster a majority in the House. Can Representative DeFazio's plan be made palatable? The first three proposals are nonsense, but the fourth is the obvious meat of the plan, along with the fifth which has already been endorsed by both McCain and Obama and is part of the amended bill that just passed the Senate.

Like Krugman said: "No equity ... no deal."

Will the Blue Dogs help kill the "new" plan?

McCain's attempts to turn the credit crisis to his political advantage backfired.


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