> RoMunn wrote: > Obama did not craft the rescue plan or any part of it. >
Interesting supposition Senator. I'll tell you a secret. You can't tell anyone. First a little background. There are essentially 2 possibilities for the bailout plan: (1.) The original 3 page Paulson plan which essentially says that the taxpayer buys the toxic assets off the banks. This has the problem of pricing: since nobody will buy the assets their price is essentially zero. Thus if Paulson pays too much the taxpayer is screwed. If he pays too little it doesn't help. Further, even if pricing is right, there's no guarantee it'll do anything. Certainly Wall St didn't think so which is why the market has been in a free fall. (2.) The Buffett Plan. The tax payer buys a share in the banks a la AIG thus giving it the power to fire bank execs, give maximum risk protection and return possibility to the taxpayer, and create the most impact by flooding the banks with enough cash to overcome collateral-call and default worries. Wait. Isn't #2 the "stock injection" plan that Paulson opposed? Sure is. And isn't #2 the option that was originally rejected due to the lobbying efforts of 600+ banking lobbyist groups? Yup. And therefore isn't #2 the one that would said would NEVER pass? Yup. But wait. I thought Friday Paulson said he was going to follow Europe and WAS going to go with stock injection. How is that possible? ANSWER: Because some VERY clever monkey made a single line change to the 400+ page bill. The line was essentially change to say that Treasury could buy "any asset". And then the question was asked on the floor as to whether than included stock to which Barney replied that, yes, this was the intention of the legislation. Who made that change?? Who? Hint: it wasn't McCain. He still opposed stock injection. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:273891 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
