[patientrenter]

All of us important and knowledgeable people (Hank Paulson, Bennie, Barney, Chris Dodd, Chuck Schumer, Nancy…) agree that there is no choice – if you want to have a productive, energetic, dynamic economy for yourselves and your children, you need to accept the only meal we have on the menu today: We start with an immediate large check from you to us. Then we move to the main course, which is the dispensing of all that money to the least responsible people during the last 5 years, the people who borrowed or lent large amounts of money to buy assets at twice their historical average prices or more. We want to make sure the prices stay high enough to allow vast numbers of people who bought assets with other people’s money to make out well, at the expense of those who saved. What’s for dessert? A surprise.

Dems and Republicans are enacting a little theater on the margins to distract the less bright amongst us. They are united in their primary purposes.

[patientrenter]

All of us important and knowledgeable people (Hank Paulson, Bennie, Barney, Chris Dodd, Chuck Schumer, Nancy…) agree that there is no choice – if you want to have a productive, energetic, dynamic economy for yourselves and your children, you need to accept the only meal we have on the menu today: We start with an immediate large check from you to us. Then we move to the main course, which is the dispensing of all that money to the least responsible people during the last 5 years, the people who borrowed or lent large amounts of money to buy assets at twice their historical average prices or more. We want to make sure the prices stay high enough to allow vast numbers of people who bought assets with other people’s money to make out well, at the expense of those who saved. What’s for dessert? A surprise.

Dems and Republicans are enacting a little theater on the margins to distract the less bright amongst us. They are united in their primary purposes.

[patientrenter]

All of us important and knowledgeable people (Hank Paulson, Bennie, Barney, Chris Dodd, Chuck Schumer, Nancy…) agree that there is no choice – if you want to have a productive, energetic, dynamic economy for yourselves and your children, you need to accept the only meal we have on the menu today: We start with an immediate large check from you to us. Then we move to the main course, which is the dispensing of all that money to the least responsible people during the last 5 years, the people who borrowed or lent large amounts of money to buy assets at twice their historical average prices or more. We want to make sure the prices stay high enough to allow vast numbers of people who bought assets with other people’s money to make out well, at the expense of those who saved. What’s for dessert? A surprise.

Dems and Republicans are enacting a little theater on the margins to distract the less bright amongst us. They are united in their primary purposes.

[patientrenter]

All of us important and knowledgeable people (Hank Paulson, Bennie, Barney, Chris Dodd, Chuck Schumer, Nancy…) agree that there is no choice – if you want to have a productive, energetic, dynamic economy for yourselves and your children, you need to accept the only meal we have on the menu today: We start with an immediate large check from you to us. Then we move to the main course, which is the dispensing of all that money to the least responsible people during the last 5 years, the people who borrowed or lent large amounts of money to buy assets at twice their historical average prices or more. We want to make sure the prices stay high enough to allow vast numbers of people who bought assets with other people’s money to make out well, at the expense of those who saved. What’s for dessert? A surprise.

Dems and Republicans are enacting a little theater on the margins to distract the less bright amongst us. They are united in their primary purposes.

[patientrenter]

MadeinT,

One of the recent govt actions was to create a backstop to support Money Market funds. Implementing that would free up the commercial paper markets, relieving the problem you describe.

For some strange reason, this MM backstop has not been implemented by Treasury. In the meanwhile, we are all made to feel the symptoms of a credit squeeze…. which makes you and many other members of the electorate anxious for a massive bailout. See some comments in the recent threads on the Calculated Risk blog for more on this.

I suspect that we are being stampeded into a bailout.

[patientrenter]

MadeinT,

One of the recent govt actions was to create a backstop to support Money Market funds. Implementing that would free up the commercial paper markets, relieving the problem you describe.

For some strange reason, this MM backstop has not been implemented by Treasury. In the meanwhile, we are all made to feel the symptoms of a credit squeeze…. which makes you and many other members of the electorate anxious for a massive bailout. See some comments in the recent threads on the Calculated Risk blog for more on this.

I suspect that we are being stampeded into a bailout.

[patientrenter]

MadeinT,

One of the recent govt actions was to create a backstop to support Money Market funds. Implementing that would free up the commercial paper markets, relieving the problem you describe.

For some strange reason, this MM backstop has not been implemented by Treasury. In the meanwhile, we are all made to feel the symptoms of a credit squeeze…. which makes you and many other members of the electorate anxious for a massive bailout. See some comments in the recent threads on the Calculated Risk blog for more on this.

I suspect that we are being stampeded into a bailout.

[patientrenter]

MadeinT,

One of the recent govt actions was to create a backstop to support Money Market funds. Implementing that would free up the commercial paper markets, relieving the problem you describe.

For some strange reason, this MM backstop has not been implemented by Treasury. In the meanwhile, we are all made to feel the symptoms of a credit squeeze…. which makes you and many other members of the electorate anxious for a massive bailout. See some comments in the recent threads on the Calculated Risk blog for more on this.

I suspect that we are being stampeded into a bailout.

[patientrenter]

MadeinT,

One of the recent govt actions was to create a backstop to support Money Market funds. Implementing that would free up the commercial paper markets, relieving the problem you describe.

For some strange reason, this MM backstop has not been implemented by Treasury. In the meanwhile, we are all made to feel the symptoms of a credit squeeze…. which makes you and many other members of the electorate anxious for a massive bailout. See some comments in the recent threads on the Calculated Risk blog for more on this.

I suspect that we are being stampeded into a bailout.

[patientrenter]

Thanks, Dave and others, for an intelligent conversation about the issue. I have one point to add: I think we should be moving as a country away from encouraging more investment in residential real estate. No more buyer incentive programs, no more deductibility of mortgage interest, no more govt guarantees for mortgage loans….

After a few years of shock, we will have an economy that is more productive, sustainable, and competitive. Any more gradual plan is, I’ve concluded, the alcholics plea for “just one more drink”.

[patientrenter]

Thanks, Dave and others, for an intelligent conversation about the issue. I have one point to add: I think we should be moving as a country away from encouraging more investment in residential real estate. No more buyer incentive programs, no more deductibility of mortgage interest, no more govt guarantees for mortgage loans….

After a few years of shock, we will have an economy that is more productive, sustainable, and competitive. Any more gradual plan is, I’ve concluded, the alcholics plea for “just one more drink”.

[patientrenter]

Thanks, Dave and others, for an intelligent conversation about the issue. I have one point to add: I think we should be moving as a country away from encouraging more investment in residential real estate. No more buyer incentive programs, no more deductibility of mortgage interest, no more govt guarantees for mortgage loans….

After a few years of shock, we will have an economy that is more productive, sustainable, and competitive. Any more gradual plan is, I’ve concluded, the alcholics plea for “just one more drink”.

[patientrenter]

Thanks, Dave and others, for an intelligent conversation about the issue. I have one point to add: I think we should be moving as a country away from encouraging more investment in residential real estate. No more buyer incentive programs, no more deductibility of mortgage interest, no more govt guarantees for mortgage loans….

After a few years of shock, we will have an economy that is more productive, sustainable, and competitive. Any more gradual plan is, I’ve concluded, the alcholics plea for “just one more drink”.

[patientrenter]

Thanks, Dave and others, for an intelligent conversation about the issue. I have one point to add: I think we should be moving as a country away from encouraging more investment in residential real estate. No more buyer incentive programs, no more deductibility of mortgage interest, no more govt guarantees for mortgage loans….

After a few years of shock, we will have an economy that is more productive, sustainable, and competitive. Any more gradual plan is, I’ve concluded, the alcholics plea for “just one more drink”.

[patientrenter]

Kev,

Thanks for calling New FNMA for your home purchase needs. You want to buy that $1.2 million house? What’s standing in your way? Downpayment? No problem, we have this new no-downpayment plan, the Paulson Put Plan. Next issue. Payments too high? No problem, we have a new low early payment plan, the Bernanke No Depression Ever Again Plan. We can layer them together for you.

What’s holding you back? If house prices go up, you win. If house prices go down, you don’t lose.

Of course house prices will be higher than they would otherwise be with this bailout plan and all the control it gives Barney Frank and Chris Dodd and Chuck Schumer and others. You already knew that.

[Author]

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