All civilization has from time to time become a thin crust over a volcano of revolution.

- Havelock Ellis

Paulson's Panic as Chicken Little

We would like to take credit for coming up with the name but Paulson's Panic has already been picked from the tree. The article that shares the title is worth the read. Here is its conclusion:

But it wouldn't automatically stimulate new lending, revitalize "securitization" or prevent more "deleveraging." Time is needed. The rescue is being constructed so hastily that it may include all manner of flawed provisions: too much power for the Treasury secretary; authority for bankruptcy judges to modify mortgages. Congress faces a wrenching dilemma, imposed on it by financial markets and Paulson. If it dawdles, it may invite the panic that Paulson has brazenly predicted. But if it acts quickly, it may create a monster whose full implications emerge only with time. [Read]

Remember, Hank Paulson has been the man at the helm for some time. He has been oblivious to what lies ahead and made a wrong decision at every turn, as each fix was supposed to be the fix. He has been unable to see three months ahead and if you believe otherwise then what were his solutions--again, he has been in this position for more than two years. That being said, why do we believe that after taking every wrong turn--even today he was "stunned" at the lack of regulation, which is doubly amazing when you realize he was the CEO of Goldman Sachs--he somehow knows the way? He has not headed off any of these problems but reacted as the problem has occurred. He has shown no foresight.

With everything we know about Hank Paulson and his propensity to react instead of act, what makes him the man with the plan?

Are we going to listen to Hank "Chicken Little" Paulson when he says the sky is falling again?

It is Paulson's panic, and we do not have to participate. The economy will still have to correct, even if we give him $700,000,000,000 or so. Let Paulson go down in history as the real "Chicken Little", but let him panic alone. The sky is not falling, even if there might be a storm.

posted at 22:09:54 on 09/23/08 by clearpolitics - Category: Economics - [Permalink]

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Richard Ticman wrote:

Contact Senator Shelby. He is the key to stopping the bailout in committee, and he seems interested in doing the right thing:

email: senator@shelby.senate.gov

http://shelby.senate.gov/re...
09/23/08 22:39:50

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