The Paulson plan for bailing out the financial sector is extremely dubious. The prospect that it will get rubber-stamped into legislation by a panicked Congress within the week is a distressing, but sadly real, possibility. I strongly urge you to oppose passage of this proposal without – at a minimum – a full and thorough airing of the issues involved.
Read all of Friedrich's stuff here. Someone on there has a nicely snide crack about Ronnie Raygun's remark that the nine most terrifying words in the language being "I'm from the government, and I'm here to help you." Don't guess we'll hear that for a few months ... Realistically, the fix is in, and we're on the hook for the money, like it or not.
And from the WaPo Web site Sunday evening:
Sources familiar with Treasury's thinking said last night that the department is also continuing to monitor troubled financial firms and may have to intervene in the markets again this week, before Congress acts on the bailout, to address specific flashpoints.
The story indicates some possibility of the Ds imposing some restraints on the money gusher. Read it here.