Yes, I saw that on CNBC. FWIW, Kashkari was not the one who promised to make the mortgage gamblers whole…it was Paulson. Hank should have been sitting next to Kashkari for that hearing.
The change in the TARP allocations was a wise one, IMHO, as buying up worthless mortgage paper and swaps, and ??? would not have kept anyone out of foreclosure, and it certainly wouldn’t be doing the taxpayers any good.
If we need to inject capital into the banks, then we should do it the same way Warren Buffett would; not just by gifting it to them via buying worthless paper and “hoping” that we get some of our money back.
