Yeah, this is actually a pretty good plan. The politicians get to look like they’re doing something and no taxpayer money is involved. This is possibly the most intelligent thing the Bush administration has ever done. I wish politicians always came up with plans like this. Could you imagine how much better off we’d be if Bush was still talking about invading Iraq instead of actually having done it?
I kind of wonder if this plan wasn’t floated out there to get the public’s reaction. If the public had clamored for a bigger bailout, then Paulson probably would have floated a new plan that involved taxpayer monies. As it is, it looks like the public is against a bailout so maybe a huge taxpayer-funded bailout won’t happen.
Of course, I also wonder if this plan isn’t just a destraction. The real bailout may be happening out of site with the changing of how the GSEs, the FHA, and the Federal Home Loan Banks operate.
