The Eclectic One

…Because labels are a poor substitute for thinking

Is Paulson a one-trick pony?

Posted by Bill Nance on September 30, 2008

Secretary of the Treasury Henry Paulson said last night that he will continue to work with congress to pass a bailout bill.

But I am honestly starting to wonder: Is Paulson, the former head of Goldman-Sachs unable to think past his experience as a stock broker? It’s an old saw that to a hammer, all problems look like a nail. Could this be Paulson’s achilles heel?

The actual problem for most people seems to be the drying up of credit. Would we be better off working to address that specific problem rather than doing an end-run by addressing bad debts held by brokerage firms and investment banks?

Ar there things the Fed and the Treasury could do which are already within their authority to ease the situation until a new administration takes office? Congressional Republicans seem to think so, and I’m beginning to wonder if they aren’t  correct.

As a consumer and non-economist I am in the same boat as most Americans: I simply don’t understand the problem in enough detail. But I grow increasingly skeptical that the solution proposed by Paulson is the correct one.

As has been pointed out by more than one member of congress, this administration has got it wrong on virtually every single major issue it has come up against. Betting $700 billion that the Bushies are correct this time when they’ve been nothing but wrong before, seems to be unwise.


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