I get why we need to do something. The markets were having a crisis of confidence at the end of last week. They were seeing a downward spiral of failed banks, frozen credit, declining house values, more foreclosures, etc.
That said, what is being proposed is a half-solution. We are basically giving Hank Paulson a taxpayer-funded credit card with a $700 billion credit line, to go shopping in the market for bad debts. There are no rules on what he can buy, how he decides to value what he buys, and at what price he buys it. It's a credit card, plain and simple. No wonder that boosted the spirits of Wall Street. LIttle Orphan America is putting its entire fate in the hands of Daddy Warbucks, er, Hank Paulson.
The question for this diary, hwoever, is - why do we have to do something by this week?
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