Just Say No!
Paulson's deal is starting to look Bush ugly. Here is Josh Marshall.
Also, according to the Journal, finance industry lobbyists are already giving orders to Republican hill staffers not to allow any meaningful reforms or protections for taxpayers. So, just the money. No strings attached.
I hate to say this, but looking at the plan as leaked, I have to say no deal. Not unless Treasury explains, very clearly, why this is supposed to work, other than through having taxpayers pay premium prices for lousy assets.
The plan is being marketed under false pretenses. Supporters have invoked the shining success of the Resolution Trust Corporation as justification and precedent. But the RTC, which was created in 1989 to clean up the wreckage of the savings-and-loan crisis, bears little resemblance to what is being contemplated now. The RTC collected and eventually sold off loans made by thrifts that had gone bust. The administration proposes to buy up bad loans before the lenders go bust
Obviously the administration proposal, whatever the need for some sort of government intervention, is basically insane and no lawmakers should support it. The question is how do we do anything about it? Social Security was an easier battle because it was about making it radioactive for lawmakers to do anything but say "Hell no." This is a bit trickier.
The $700 Billion Underpants Gnomes
Step 1) Buy $700 billion of big shitpile at inflated prices
Step 2) ..
Step 3) Profit!!
Just Say No!