Treasury Secretary Henry Paulson pledged Friday to "move rapidly" on a 700-billion-dollar financial rescue plan passed by Congress giving him authority to buy up assets distressed by the housing collapse. (AP)
Paulson cannot be trusted to spend this $700 billion dollars, especially since he plans to do so in a rapid manner. Paulson is the same guy who a few years ago was involved in dealing extensively in toxic mortgages when he was a Goldman Sachs, and has a long history of wrongly calling the bottom for the housing market.
Posts
Hardly surprising - really I would expect him to disburse the funds rapidly based upon what he has said about this.
ReplyDeleteUltimately though they will overpay for the assets that they buy - the whole premise of this thing is to inject liquidity, and if the sellers were to sell at what fair market value is today the sellers would practically admitting insolvency.
Paulson claims that the government might actually make money on these things. The only way that this could possibly be the case would be if current housing prices were abnormally low and were eventually to recover.
He's got his blank check. You can bet he's going to spend it a fast as he can before the next president steps in.
ReplyDelete