Fuck the Dollar, Fuck the People: Bail out Wall Street

[debbierlus]

You know it's bad when Fox news becomes the voice of reason....

The headline on Rawstory.com

Treasury Secretary Paulson: Save the 'markets,' not the dollar.....

Fox News' Chris Wallace assails Treasury Secretary Henry Paulson on this morning's Fox News Sunday about the implications behind the federal bailout of troubled investment firm Bear Stearns.

"We've got strong financial institutions," insists Paulson. "Our markets are the envy of the world. They're resilient, they're...innovative, they're flexible. I think we move very quickly to address situations in this country, and, as I said, our financial institutions are strong."

On being asked if the government will step in to bail out any additional firms, Paulson refuses to "speculate" on what "might happen," but insists: "Our focus, our priority... No. 1 priority, is the stability of our financial systems."

"What we're working to do," he continues, "is to minimize the impact of what's going on in housing, what's going on in the capital markets, on the real economy."

"But," pushes Wallace, "isn't the result of this that U.S. taxpayers might end up holding billions of dollars in bad mortgage securities?"

"I'm not going to speculate about the outcome of this specific situation," reiterates Paulson. "You're going to have to wait and see. Conversations are going on--over the weekend--I'm very involved in those conversations."

"I'm confident that this was the right thing to do," he continues. "Sometimes there are difficult decisions; this, in my judgment, was not a difficult decision. It was a right decision. And, again, our markets are very important."

"Why should the government," asks Wallace, "and thereby, U.S. taxpayers, bail out lenders and borrowers who made bad decisions; and, if they know they're going to be bailed out, what does that do to the 'moral hazard' argument that they don't end up paying a price?"

Paulson insists he understands the "moral hazard" argument, and tells Wallace he is jumping to conclusions when it comes to the taxpayer cost of the Bear Stearns bailout, and to "wait and see." Paulson further defends protecting the "capital markets," and thereby, he says, the economy.

"Why not," asks Wallace of the plunging U.S. dollar, "take a more aggressive stance and support a stronger and stable dollar, and even implement policies to--prop up the dollar?"

"A strong dollar is in our nation's interest," responds Paulson. "Our long-term fundamentals in this country--economic fundamentals--are strong. Our economy has its ups and downs like any other economy, but I believe that that long-term strength is going to be in the dollar."

Paulson touts "pro-growth tax" and openness to free trade (including a pending free trade agreement with Colombia).

He concludes: "Anything we can do to enhance confidence in our marketplace; in our capital markets; in our economy; are--the policies that increase confidence in our economy over time."

More of the interview appears below, as broadcast on Fox News' Fox News Sunday on March 16, 2008.

http://rawstory.com/news/2008/Treasury_Secretary_refuses_actions_to_strengthen_0316.html

[youknowmenotdlc]

1. Financial nitwit here

I have very little basic understanding of how our financial markets work (just like Mcain) but, and please correct me if I'm wrong, it sounds like the Bushies are gonna use our tax money to bail out his "base" while simultaneously sinking the dollar resulting in infaltion which will screw us a second time.

Is this about right or am I missing something?

[durablend]

3. No you're about right on target...

I'm guessing most everyone but the priveleged class and those with their head jammed far up Bush's ass will easily figure it out even without the help of FauxSnooze.

[gravity]

5. Last night's action was necessary

A Democrat would have approved the same thing, although a Dem probably would have helped avoid this mess to begin with.

If Bear Stearns went bankrupt, it could create a chain reaction which could collapse the financial system, and the consequences would have been much worst. It is the lesser of the evils at the moment.

[Supersedeas]

2. "our" markets are very important

[debbierlus]

4. I wish people here on the boards would get their head out of the sand

The economy is crashing around us. In the next month, it looks like the bottom will fall out. And, people just don't want to believe it.

Death by a thousand cuts.

Rawstory has an article of how foreign banks are going to stop buying our debt. THAT is going to be the final nail in the coffin.