Mercury Rising 鳯女

Politics, life, and other things that matter

Paul Krugman is more optimistic than I am over the Paulson Plan

Posted by Charles II on September 22, 2008

MarketOracle.co.uk's view of the Paulson plan, via Truthout
[Image from MarketOracle.co.uk]

Krugman thinks the discussion draft is a huge improvement over the Paulson Plan.

While I see some good in this counterproposal, I would say that the Congress is insisting on:
1. Probably worthless scraps of paper in exchange for other worthless scraps of paper,
2. A seat at the table, in which Republicans get four seats and Democrats get 1 (until roughly April 2009, when replacements for the SEC and FDIC are in place).
3. An opportunity to spend the $700B before the foxes are replaced from their positions guarding the chicken coop.
4. A fervent but likely-to-be-unconsummated desire for money for HOPE mortgages.
5. Sweetheart transactions at fire sale prices, ala what happened with the S&L bailout.
6. An escape hatch from responsibility for the Administration that will last until the first Tuesday in November.

That’s my read through page 17.

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