"Mr. Paulson walked lawmakers through his logic. By giving him the authority to spend an unlimited amount of money, he said, the markets would accept that the government’s commitment is solid, and that would increase confidence.
“When I picked up my newspaper yesterday, I thought I woke up in France,” Senator Jim Bunning, Republican of Kentucky, said at the hearing. “But no, it turns out socialism is alive and well in America.”
other exerpts
“I believe everything I say,” Mr. Paulson replied. “I’ve been around markets for a long time.”
“So have I,” Mr. Bunning angrily responded. “Where will the money come from if, in fact, we have to use the backstop?”
After Mr. Paulson replied that he did not think any money would be needed, Mr. Bunning said, “That doesn’t answer my question. Where is the money going to come from?”
“From the government,” Mr. Paulson said.
“And who is the government?” Mr. Bunning asked.
“The taxpayer,” Mr. Paulson said.
"http://www.nytimes.com/2008/07/16/business/16fannie.html?hp=&pagewanted=all |
