Hank Paulson Has No Clue
Henry “hank” Paulson is looking for Congress to give him $700 Billion to buy the bad debt from the trouble financial institutions. Why should they do that? Well he says that the alternative is unimaginable.
The credit market are in shambles and he feels that there’s nothing else that could be done (so he says). The financials are riddled with unsellable bad debt of unknown value and without the government stepping in and but the debt the sector will get worse. Buying the debt Paulson said, and creating a market for it is the only thing that should be done. If nothing is done, small and big business’ won’t get loans. no more auto loans and mortgages will dry up even more. the ripple effect will carry to the rest of the economy.
.
It is said that Congress will pass some sort of bailout before the end of the week. Why the end of the week? Because Congress is set to adjourn at that time (which is unnecessary since they just got back from their five week vacation.
.
The proposal is being pushed to Congress by the White House this weekend. What is unclear is the proposal itself. It doesn’t answer any questions as to how these assets will be handled. For one, what are the assets going to be priced at, when they are bought now or when they’re sold off later. Paulson doesn’t have a clear cut plan on how this will be handled. He also stated on Meet The Press, “We can’t determine what the cost is today”. He’s fly by the seat of his pants. This man is totally in the dark and trying to tell us (the American people) that this will help the financial sector, but at what cost? In my opinion, at the cost of the taxpayers not the investors or the management of these failed corporations. As it is these CEO’s will still get their bonus’ of millions of dollars and we get caught holding the bag (of crap).
.
The bill is said to possibly include some sort of mortgage relief for homeowners, but most likely not include another stimulus package. We will have to see what happens when Congress is faced with authorizing the $700 billion for the Treasury dept. to buy these some-what worthless assets. There has been discussions with foreign countries encouraging them to participate in some way (this is where my head starts spinning). This proposal would also allow Paulson to buy assats for foreign banks.
This country is in grave danger and it’s not from Wall Street, it’s all coming from the government. What I want to know is where was the SEC during the last year while this was all building up. Aren’t they suppose to be watching these institutions?
Chris Cox and Hank Paulson should be fired as well as tarred and feathered for their lack of focus during this period.
From the looks of this issue, it might help the financial sector, but for how long?
Recent Comments