Monday, September 29, 2008

The Bailout of All Bailouts

Robert Reich:

Prediction: A scaled-down bill will be enacted by the end of the week. It will provide the Treasury with a first installment of $150 billion. Treasury can use it to back Wall Street’s bad debts with lend no-interest loans of up to two years, until the housing market rebounds. Or to invest in Wall Street houses directly, in exchange for stocks and stock warrants. There will be strict oversight. Congressional leaders will promise further installments, but with conditions calling for limits on salaries and relief to distressed homeowners.
Sounds more reasonable than Hank Paulson getting a preloaded ATM with $700 Billion to hand out to undeserving criminals on Wall Street.

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