3 ms·

Although a good idea, I am convinced this will NOT happen, because the last thing Paulson wants is transparency in the process. . If this act passes, Paulson w

by felipe 18y ago

Although a good idea, I am convinced this will NOT happen, because the last thing Paulson wants is transparency in the process. . If this act passes, Paulson will have the authority to artificially assign arbitrary value to papers that the marketplace already valued at zero. His plan is to pay top-dollar for worthless paper, with money borrowed from you, me, everyone else and the next generation. -- That's why he does not want transparency.

kqr2 18y ago
In fact, it specifically says it is non-reviewable: Text of Draft Bailout Proposal: http://www.nytimes.com/2008/09/21/business/21draftcnd.html?_r=1&ref=business&oref=slogin http://www.nytimes.com/2008/09/21/business/21draftcnd.html?_... Sec. 8. Review. Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
- LogicHoleFlaw 18y ago
  How is that even legal?!
  - nostrademons 18y ago
    It's a law. If the law passes, it's by definition legal. It could potentially be unconstitutional (perhaps granting this much non-reviewable power to the Treasury Department, an executive branch agency, violates the separation of powers), but I doubt it. Considering all the other power grabs that the executive branch has gotten past the Supreme Court, this one ranks fairly low. If you're pissed off about the bailout, contact your legislators. It's their job to stop things like this, and they won't do it unless they know their constituents are really, really pissed off about it.
furiouslol 18y ago
Precisely. There are plenty of private buyers for those papers at 0.08-0.10 on the dollar but the banks are no budging since doing so will render them insolvent. So Paulson will use the taxpayers' money to buy the papers at above market price, ensuring survivability of the banks, while the taxpayers hold the risk of further depreciation of the papers.

by felipe 18y ago

kqr2 18y ago

In fact, it specifically says it is non-reviewable: Text of Draft Bailout Proposal: http://www.nytimes.com/2008/09/21/business/21draftcnd.html?_r=1&ref=business&oref=slogin http://www.nytimes.com/2008/09/21/business/21draftcnd.html?_... Sec. 8. Review. Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

LogicHoleFlaw 18y ago
How is that even legal?!
- nostrademons 18y ago
  It's a law. If the law passes, it's by definition legal. It could potentially be unconstitutional (perhaps granting this much non-reviewable power to the Treasury Department, an executive branch agency, violates the separation of powers), but I doubt it. Considering all the other power grabs that the executive branch has gotten past the Supreme Court, this one ranks fairly low. If you're pissed off about the bailout, contact your legislators. It's their job to stop things like this, and they won't do it unless they know their constituents are really, really pissed off about it.

furiouslol 18y ago

Precisely. There are plenty of private buyers for those papers at 0.08-0.10 on the dollar but the banks are no budging since doing so will render them insolvent. So Paulson will use the taxpayers' money to buy the papers at above market price, ensuring survivability of the banks, while the taxpayers hold the risk of further depreciation of the papers.