Published on
by
Huffington Post

It's Time for Paulson to Cut the Crap and Do His Job

by
Dean Baker

Just about every economist who supports bailing out the banks thinks that taking an equity stake through a direct infusion of capital is the way to go. While Secretary Paulson had pushed for his buying bad assets approach, he is now playing Hamlet and flirting with the idea of going the equity route.

This is not the time for high school drama. Doesn't Paulson remember his comments from the last two weeks when he told us that the economy would collapse if Congress didn't act immediately? Those statements were not true, and obviously Paulson didn't believe them, since it has now been a week since he got his bill and we still don't have even the outlines of his plans for buying bad assets.

We could harp on the bad faith shown by the administration in using unwarranted fear to force Congress into hurriedly passing the bailout bill. We could also harp on the horrible media coverage on this issue, with the media acting almost as an appendage to the Bush administration in its efforts to increase public support for the bill.

But the immediate issue is to get the Treasury to actually do something to help the economy. That means using its $700 billion in the most effective way possible by directly injecting capital into the banking system. What will it take to get Paulson to move?

 

This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Simply Won't Exist.

Share This Article

More in: