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As economists puzzle over the proposed details of what may be the biggest financial bailout in American history, the initial skepticism that greeted its unveiling has only deepened.
"There's a tendency for people to think these are stocks and bonds and you know what the price is," said Bruce Bartlett, a former White House economist under President Reagan. "The problem is people are operating in a world in which nobody knows what the hell is going on. There's some naïve assumptions about how this would function."
If Mr. Paulson pays the market rate — whatever that is — that presumably would not be enough to persuade banks to sell. Otherwise, they would have sold already. For the plan to work, Treasury has to pay a premium. "It's a straight subsidy to financial institutions," said Martin Baily, a former chairman of the Council of Economic Advisers in the Clinton administration, and now a senior fellow at the Brookings Institution. "You're essentially giving them money"
Originally posted by Chakotay
Most of us are so angered and confused by this that we don`t even know what to say. Thanks for saying it for us. Lets ALL reply to this thread and make it huge to say we want accountability- and our share of the loot