Why does Paulson want to use the MFI to buy toxic assets, he may end up poisoning the whole US & the global?
Seeing taxpayers' money being spent on nonproductive and exorbitant bailout schemes instead of being spent on productive and growth-generating education, health and infrastructure?
- 1 decade agoFavorite Answer
Great question. There is no guarantee this will do ANYTHING! This whole thing stinks. Bush & Paulson and many in Congress simply want this money no questions asked.
Only a few are standing up to this.
'"We totally understand the gravity of the moment ... but you cannot just turn over $700 billion of taxpayer money and not insist that the taxpayer is going to be protected," Senate Banking Committee Chairman Christopher Dodd told reporters.' Yahoo News
$700 billion no questions asked? This is absolute insanity.
- realst1Lv 71 decade ago
Because this is a horrendous Ponzi scheme. The GOP touted free markets, deregulation and lax oversight which led to this meltdown. It was fraud on a global scale. Paulson, former CEO of Goldman Sachs, one of the companies involved in these scams, wants a blank check to bail out investors who were making big bucks and insiders who were getting huge bonuses.
This is socializing the costs after all the private profits have been drained away. No taxpayer money should go to these crooks, instead we should have investigations and arrests for fraud and gross malfeasance. If there is a lack of capital in the market, go after the billions given as bonuses for a start.
Read The Shock Doctrine by Naomi Klein, this is disaster capitalism at its worst!Source(s): http://www.youtube.com/watch?v=nipz1pEl71Q
- Peg BLv 41 decade ago
Unfortunately the government has assumed the parental role of trying to help everybody all the time.
The philosophy "it's different this time" has been shown to be false.
Rules and laws were put in place during and after the great depression to prevent the abuses we're seeing now. We threw those rules out the window and let the banks and mortgage companies run riot. Now we are reaping what Santana warned of: "those that don't know history are condemned to repeat it."
- whimsyLv 51 decade ago
Hey, if we could purchase the securities and loans at a percentage of face value -i.e. ~ 60 %, it could be a wise deal.
I don't think we should guarantee the value of the inflated housing coasts at the "bubble's" prime, nor should we underwrite exorbitant bonuses and severance packages to upper management of failed firms..
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- ♥Rich♥Lv 41 decade ago
Paulson and his buddies make their money selling junk. 'Junk sellers'
No one wants to buy it now so he will make the US Taxpayers buy it no questions asked!