U.S. Treasury Secretary Paulson
“Pow! Right in the Kisser!”
First, U.S. Treasury Secretary Henry “Hank” Paulson, Strong-armed Congress to get approval for a 700 Billion Dollar “Bail-Out / Rescue Plan”. Mr. Paulson set the punch up by saying that the money (from the Rescue Plan) would be used, to assist Banks, Insurance Companies and Investment Firms. He said this move would help stabilize Credit Markets.
Then yesterday, I read the most recent Remarks by Secretary Henry M. Paulson, Jr. on Financial Rescue Package and Economic Update [code name:" bla bla bla" ] Below, is what Hank Mr. said now intends to use the Tax-Payer funded Bail-out money .:
Is Hank Holding a Sucker Punch In His Right Hand?
“[First] Although the financial system has stabilized, both banks and non-banks may well need more capital given their troubled asset holdings, projections for continued high rates of foreclosures and stagnant U.S. and world economic conditions.
[Second], the important markets for securitizing credit outside of the banking system also need support. Approximately 40 percent of U.S. consumer credit is provided through securitization of credit card receivables, auto loans and student loans and similar products. This market, which is vital for lending and growth, has for all practical purposes ground to a halt.
Addressing these two priorities will have powerful impacts on the overall financial system, the strength of our financial institutions and the availability of consumer credit.
[Third], we continue to explore ways to reduce the risk of foreclosure.”
Mr. Paulson intends to buy Bad Debt from Creditors! This includes; Credit Cards, Auto Loans, Student and other Loans( possibly even Mortgage / Credit Default Swaps). As a result, the stock market plummeted 400 points. Even investors know that is a terrible way to attack the Sub-Prime Credit Crisis and Freezing of Credit Markets.
Here’s what Debtors will find painful about Mr. Paulsons Sucker-Punch:
After the U.S. Government takes care of Credit Predators, by Securitizing their Debt, Consumers still will have to take care of themselves. Mr. Paulson failed to mention anything to help Consumers. The Government is supposed to be neutral, and let the Market Decide. So, if Credit Predators make overly-risky loans, they should have to take care of themselves.
What do you think about Secretary Paulson’s Head-Fake and sucker punch? Feel free to leave a comment below. Comments are moderated but, if they are not spam or offensive, we share them.
[...] BAILOUT UPDATE: Earlier this week it was revealed that, Treasury Secretary Henry Paulson Jr. Head Faked and Sucker-Punched the American People. How? By not using the $700 Billion, Bail-out money, to help the Housing Market and Consumers [...]