Capital Commerce

The Real Reason Behind Hank Paulson's Change of Mind

November 14, 2008 RSS Feed Print

Right before I was interviewed this afternoon by CNBC's Erin Burnett, she interviewed Hank Paulson. During that chat, the Treasury secretary seemed to imply that one reason he abandoned the idea of using the $700 billion bailout to buy bad mortgage debt securities was that $700 billion might not have been enough money to do the trick.

So let me get this straight: Paulson tells Congress that if they don't give him the dough, the global financial system will collapse. And then it turns out the problem is even bigger than what he first thought. I do not find that comforting. ... I will tell you this, I don't think Paulson has to worry about Obama asking him to stay on for a few months in 2009.

Tags:: Henry Paulson

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Paulson is running out of time and money. He needs congressional approval to get at the other $350B of the $700B bailout package. Of course he's going to say "I've got a new plan.. this time I'll take your feelings into account..promise!"

Gustavo Corral of NY 12:21AM November 16, 2008