Paulson Plan May Be In Bi-Partisan Trouble
The Paulson plan may be one of those initiatives that, the more scrutiny it gets the less likely it is to be enacted.
I've heard from lots of people on Capital Hill that the plan is in trouble. The combination of skeptical markets, growing questions about some of the initial provisions and subsequent revisions, and the cost is making the folks in the House and Senate feel better about slowing down the process and considering alternatives.
The fact that the economic community also seems to have some severe issues with the plan -- also on a bipartisan basis -- is also making it easier for members of Congress to ask questions. How often do Paul Krugman and Bill Kristol agree on policy issues?
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Alternative to Paulson plan?
I'd like to hear better ideas.
The credit freeze is gonna kill us quickly. I heard from someone who lost their job Friday . . . credit lines frozen and a small manufacturer closed down. He's out of a job, and I expect this is beginning to happen at other places . . . can we afford to sit around arguing while Rome burns?
Every day that goes by without a plan will take another 200-400 points off the DOW. Confidence will erode. Banks will continue to freeze lending, more small businesses will fail, more foreclosures. This is the paradox of de-leveraging, a negative feedback loop.
It has to be stopped.
Anybody have a better idea than Paulson's? One that will get my friend's job back?
The best explanation of the
The best explanation of the crisis I have heard to date was Bill Clinton on the Letterman show (IKYN). If Bush even understands the crisis, Bush is incapable of communicating it. No spokesman for Bush has the credibility or communication skills to explain the issue to the public. The fuels the public frustration and lack of support for sound policy.
I doubt that Krugman and Kristol agree on too much other than the Paulson plan is bad. As leaked, the Paulson plan has no checks and balances. That may be typical for a Wall Street Baron. However, the checks and balances are critical to American government. Much of the current crisis is due to lack of regulation and oversight (checks and balances).
Yes, Clinton on Letterman was excellent
He explained the root causes of the crisis in less than 2 minutes in plain speak. I think he did more to reassure and calm with his statement than anyone from the administration has done in the past 2 weeks.
He's gifted. And intelligent. I didn't fully appreciate that before . . . we need to get smart (and articulate) people back into government!
You're right bakho, Paulson comes from the private sector, where he worked in a hierarchical structure . . . he doesn't immediately think of checks and balances, but those have to be built in to the plan.
Why can't we see anywhere a
Why can't we see anywhere a clear description of the size, nature and description of the problem? Instead, all we know is that $700 billion is being thrown at the problem.
Why no greater transparency? Does no one really know the nature or extent of the problem, or is the number so large that no one dares speak its name?