Bloomberg offers an excellent rundown on the bailout, including condemnation from Nouriel Roubini, who has been correct on this crisis since day one:
The Bush administration sought unchecked power from Congress to buy $700 billion in bad mortgage investments from financial companies in what would be an unprecedented government intrusion into the markets.
Through his plan, Treasury Secretary Henry Paulson aims to avert a credit freeze that would bring the financial system and the world's largest economy to a standstill. The bill would prevent courts from reviewing actions taken under its authority.
"He's asking for a huge amount of power,'' said Nouriel Roubini, an economist at New York University. "He's saying, `Trust me, I'm going to do it right if you give me absolute control.' This is not a monarchy.''
(*No, I won't call these people "capitalists". It's clear that they aren't in any serious sense. It's much closer to an organized crime racket, or as I put it, a socialist oligarchy. The economic minds of the Bush crowd more closely resemble the crooked makeup of Putin's Russia than anything from the West.)
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The Bush Administration plan put forth by Paulson and Bernanke IS the Roubini plan for a HOLC that he outlined on September 19th at www.rgemonitor.com
Unfortunately, the Democratic Congress has chosen to play politics with the HOME part of Roubini's plan, and there is no time for political wrangling on this, so the current administration is correct to us the FED balance sheet to fix the problem right now, as time is of the essence. Once the immediate crisis is past, then congress can be free to wrangle over how to provide relief for upside-down mortgage holders.
No matter your political leanings, I encourage you to read Mr. Roubini's blog at www.rgemonitor.com , it is an education in itself, the man is brilliant.
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