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Politics : THE WHITE HOUSE

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Nov 5 4:00 PM EST

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To: pompsander who wrote (22732)	9/22/2008 7:45:22 PM
From: DuckTapeSunroof	Read Replies (1) of 25737

Re: "Not doing anything" is not really such a good option. But there seems to be a clear difference in TACTICS that is appearing... some DAYLIGHT between what Bernanke and what Paulson are each pushing or doing. Paulson seemingly wants to write a MASSIVE BLANK CHECK to Wall Street and Main Street BANKS. With no strings on what they are to do after they receive the cash, no limits on their actions, no incentives to really do anything different from what they are already inclined to do. Just 'air-drop' a big pile of taxpayer-cash on the banks (US, and foreign banks... although I'm not really certain that the taxpayers will be all that happy to find that their taxes paid are going to go to bail-out Swiss and German and French and Chinese banks....) While Bernanke, when he bails-out failing financial institutions (as with AIG) has the government loan them money at stiff interest rates --- and then take the equity of the banks and replace the management if and when the institutions can't come up with the scratch to repay the loans they've taken out from the taxpayer.... It allows the private companies (who have clearly gotten themselves into all this trouble through their poor handling of risk and lousy management) a fair opportunity to right their ships under their own steam, and then regain control --- but IF THEY FAIL IN THAT TASK it would transfer ownership to the American government... and allow the poor suffering taxpayers a possibility of actually being the ones to BENEFIT from the government-engineered turnarounds at these institutions, as the housing markets eventually turn-around. Count me with BERNANKE, the Fed Chairman, on this one. If the taxpayers are going to pony-up a Trillion or so to rescue these failing institutions --- let the taxpayers at least have a chance to benefit from that bail-out with their tax revenues, by still having some 'skin in the game' when these companies are turned-around and eventually RE-PRIVATIZED in a few years.

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