Paulson’s Plan in Review - Why Is It Suspect?

Okay folks I know it is difficult to bite, chew and digest this plan all in one bite.  So, the only way to eat this huge elephant is to take it one bite at a time.  So here we go!  This bailout or rescue plan (depending what side of the tracks you are on) is designed to keep banks from failing by recapitalising them. I read somewhere where they used the analogy that It is like a massive financial organ donor program where the Treasury replaces the guts of the current system with new, unclogged guts.

Bailout or Rescue Plan? A Pig with Lipstick is still a Pig! It’s still $700 Billion!

Whether you live in Peachtree City or anywhere around the world, by now you have heard about the $700 Billion Dollar proposed bailout plan.  Not only that, if you are like most folks you have set aside partisan politics because this will affect not only us but our children and grandchildren for years to come!  Folks, even the staunch republicans are distancing themselves from Bush on passing this legislation without even judicial oversight.  John McCain has even contacted Barack Obama to call off the campaign (including Friday’s debates) so he can get back to Washington to work on this legislation.  

Bailout Effect of Fannie Mae and Freddie Mac

Okay folks its happened, the Bush administration, acting to avert the potential for major financial turmoil says the federal government was taking control of mortgage giants Fannie Mae and Freddie Mac.  In doing so, it was also announced that both execs from these institutions were being replaced.  The replacements will be Herb Allison, a former vice chairman of Merrill Lynch, to head up Fannie and David Moffett, a former vice chairman of US Bancorp, will run Freddie.