3 Reasons Behind Hank Paulson’s Bailout Flip-Flop

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smithtony184 of NY 7:25AM May 30, 2012

Watch the Obama Deception. Hey Hank, what happened to the money? Oh, that's right, like Chuck Schumer of New York said "the American people really don't care." We have a bunch of corrupt, evil, selfish thugs running this country, in case no one has noticed. Paulson should be in prison, forced to endure hubba-hubba with Bubba. The American people get hosed again. It's time to tear down this sham of a government we have and start over.

Don Dierdorff of NV 10:52AM June 22, 2009

It is common sense that unless a problem is addressed at root, it would resurface later and relapse could be more severe. I have tried to present a root cause analysis of the financial crisis and practical solutions for short term as well as long term in the article on link below. The title of the article is "Henry Paulson's Approach is Bass Ackwards":
http://commonsensetopics.blogspot.com/2008/11/henry-paulsons-approach-is-bass.html

Varun of CA 2:29AM November 27, 2008

You need to check out the Mo Mod platform to address illiquid assets for banks and financial institutions. I heard one network talking about it today. FDIC and Treasury need to get the Mo Mod crew on the team quick, the ship is sinking like the Titanic

Close to the Situation of DC 7:04PM November 18, 2008

The cause of this whole "friggin" mess can be attributed to the American people mimicking their government: SPENDING MONEY THAT THEY DIDN'T HAVE! Poor slobs like me who have avoided debt like the plague will now be paying a significant price for the actions of our incompetent and kleptocratic government and their porcine constituencies. Color me "FED UP".
Oh yeah! They can pour money into Big 3 until the cows come home and it will not help sell a single car: People cannot afford cars and they can't qualify for car loans either. The banks are mitigating risk by only loaning "Bailout Money" to folks who can prove that they do not need it! Paulson should be putting money where it will be spent to buy goods and services and not on Banks, Bonuses, Junkets, UAW pensions or medical benefits. We used to adhere to the "Survival of the Fittest" philosophy, now we follow the "Survival of the Fattest" philosophy.

Justin Seine of NY 3:41PM November 16, 2008

Yes, I can see that Paulson may think that it would be very time consuming to obtain the bad assets from the banks. Why not set up a government center where people, who are in foreclosure, can call and have that government center deal with the loss mitigation departments. The government agrees to take one-half of the loss and the lender agrees to take one-half of the loss. That way the lender and government are taking responsibility for their failures equally.
This is not complicated, and the foreclosures need to be stopped, and loans re-worked so that people can stay in their homes and make their payments. Then they will start spending money on other items.
The economy will not stablize until we address the foreclosure issue.

Darlene Krause of FL 2:38PM November 14, 2008

It was my understanding that the legislative branch appropriated money for a specific purpose and the executive branch was required to use it only for that purpose. That's why the additional week was required to put safe-gaurds in place to assure the money was spent for the correct purpose and that proper oversight was in place. Isn't it illegal to do otherwise? Where is the GAO and congressional oversight? Are they too timid to step in and require the appropriated funds be used for the purpose intended? Or does Congress have less of a clue than the Administration on how to handle this mess? Appears to me that they are equally stupid.

Gary McKnight of OK 5:54PM November 13, 2008

As a commercial real estate capital advisor, we're seeing firsthand that banks with REO land on their books are less inclined to sell that land at "market" and show a big loss when they can get 5% preferred equity capital from uncle Sam and hope for values to improve. Banks need to get rid of non-performing assets, not dilute their balance sheet with "cover-up" capital. The equity injection should be conditioned on cleaning up the balance sheet, not just covering it up.

Mark from Atlanta of GA 1:54PM November 13, 2008

Why should any of us be shocked. This administration lies, and lies and lies, as if they are allergic to the truth. We are grown ups and can take the reality of the situation. Hell, we been dealing with this recession for the past 2 years and its now amazing that this administration has just figured out just how much trouble we are really in. Typical like a homeowner who overspent and can't accept the fact they can no longer afford their home, they ignore the signs of trouble and go into denial and lose the home in the process instead of reaching out and communicating. This administration has just stuck their heads into the sand and do not intend on raising them until January 20, 2009 as the sail out the door. Hopefully, America will not be so stupid to elect anymore incompetent individuals to the highest office in the land. We've seen what incompetence has done to this country. We are last in just about everything and the whole world is not only watching, but laughing at us. Thanks for making America the laughing stock of the world MR. BUSH. Now have the dignity to resign from office so that the next POTUS can step in and start helping the American People, since you refuse to do anything for us.

Sick of Bush and his Klan of CA 1:46PM November 13, 2008

Here is a link to Michael Lehmann's blog (Nov. 11). He is an economic professor who gives a well-thought out and articulate solution: http://beyourowneconomist.blogspot.com/feeds/posts/default

B Peterson of WA 10:24AM November 13, 2008