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Quick....write me a check for $700 billion. No strings attached. No judge can question the transaction. I'll determine how the money is spent. And if you don't write the check quickly.....the world will end.
Why trust Treasury Secretary Henry Paulson? Why trust a guy who has said all of the following things just this year......
Bernanke said he believes major banks and Wall Street firms are likely to take additional earnings hits tied to bad investments in subprime mortgages.
But he added he's not worried about bank failures because he thinks banks entered the current downturn with sufficient capital and have been able to raise additional funds.
"Aren't you underestimating, not giving enough attention to, the severity of the problem in the credit markets?" asked Schumer. He said Wall Street executives he's talked to "seem much more worried" about credit woes than Paulson and Bernanke.
Paulson, a former CEO of Goldman Sachs (GS, Fortune 500), responded that he also spoke regularly with top Wall Street executives, adding "some are more worried than others."
Paulson said the economy "is fundamentally strong, diverse and resilient" and that the main problem is that it is "undergoing a significant and necessary housing correction."
" So while some in Washington are proposing big interventions, most of the proposals I've seen would do more harm than good. I'm not interested in bailing out investors, lenders and speculators. I'm focused on solutions targeted at struggling homeowners who want to keep their homes."
In an interview with The Associated Press, Paulson said the turmoil that has gripped Wall Street and that took a turn for the worse again in March has eased somewhat. "There's progress," he said. "I think we're closer to the end of this" than to the beginning.
The Treasury chief also sought Thursday to calm investor jitters about the financial health of mortgage giants, Fannie Mae (FNM) and Freddie Mac (FRE). They are "working through this challenging period," Paulson told Congress. "Their regulator has made clear that they are adequately capitalized."
"For market discipline to effectively constrain risk, financial institutions must be allowed to fail," he said
BLITZER: How stable is Fannie Mae and Freddie Mac?
PAULSON: As I said, Fannie Mae and Freddie Mac are very important to our markets
BLITZER: If necessary, will you in effect bail them out?
PAULSON: No, I said there will be adequate capital if necessary to help them meet their requirements as they go forward.
he predicted that the bulk of the housing slump would be over in months, instead of years.
Paulson repeated his belief that the nation's economy remains fundamentally sound despite the mounting losses on bad mortgage loans that have shaken Fannie Mae and Freddie Mac.
Yet, Henry now says he is correct about the need for a cash advance of a "clean" $700 billion to prop up that "fundamentally sound" economy.
Whatever....I mean hell....he's been spot on so far.
This just in...
(White House Deputy Press Secretary Tony) Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials. He acknowledged lawmakers were getting only days to peruse it, but he said this should be enough.
This entire situation is an emergency alright.....an emergency for the Republican Party candidates in about 6 weeks.
Ohio's own Marcy Kaptur (D-Ohio-Toledo)....she gets it...