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Category Archive: Why the Wall Street bail out plan is bad

Sep 30 2008

Why the Wall Street bail out plan is bad-6: The credit ratings agencies scandal

In voting down the bailout proposal 228-205 yesterday, the House of Representatives struck a small blow for democracy. They refused to be steamrolled by Wall Street and its agents in Congress and the administration. As usual, in the run up to the vote, the administration met in secret with the Congressional leadership, worked out some …

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Sep 29 2008

Why the Wall Street bail out plan is bad-5: Rewarding greed

In this next-to-last post in this series (but probably not on this topic), I want to look at how senior Wall Street executives saw their profession as some sort of game in which the goal was to extract more personal benefit than the next executive, leading to a leap-frogging of various forms of compensation packages …

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Sep 26 2008

Why the Wall Street bail out plan is bad-4

A large number of economists were quick to express their dislike of the Paulson plan and have been vociferous in urging Congress to not be stampeded by the administration but to use this opportunity to put back into place some of the regulations that were dismantled over the last three decades. Meanwhile on NPR this …

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Sep 25 2008

Why the Wall Street bail out plan is bad-3: More doubts

I have described before how the subprime mortgage debacle lies at the root of this mess. But how did it come about that mortgage lending, once the most conservative and transparent and regulated of banking practices, became the basis of a massive shadow economy in which trillions of dollars flowed around, free from any oversight? …

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Sep 24 2008

Why the Wall Street bail out plan is bad-2: Manufactured crisis?

I have been getting increasingly suspicious that this so-called financial crisis may be a bogus one to enrich this administration’s base of Wall Street cronies before Bush leaves office. While I am not an economist and do not have the inside knowledge that Henry Paulson (Treasury Secretary) and Ben Bernanke (head of the Federal Reserve) …

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Sep 23 2008

Why the Wall Street bail out plan is bad-1

I wrote last Friday of the reasons behind the current financial mess. Over the weekend, as everyone is aware by now, the US government issued a plan to put up a huge amount of money (initially about $700 billion but likely to grow to well over a trillion) to bail Wall Street out of the …

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