The proposed $700 million bailout is unlikely to increase trust between banks, will threaten our sovereign credit rating, and may even collapse our currency.
It only attempts to protect favored banks, and ignores the reality that trillions of dollars in bad debt must be liquidated before we can recover from this crisis. For every lender there is a borrower, and our borrowers have simply assumed too much debt relative to their income.
Objections from a variety of perspectives are expressed by others:
- Dallas Federal Reserve Governor Richard Fisher - Bank Rescue Plan Would Worsen Fiscal Chasm
- Former Treasury Secretary Paul O’Neill - Bush Doesn’t Get Financial Crisis
- Former FDIC Chair William Isaac - A Better Way to Aid Banks
- BB&T CEO John Allison - Paulson Plan Aimed at Helping “Poorly Run” Banks
- NYU economist Nouriel Roubini - Why the Treasury TARP Bailout is flawed
- New IMF Study Contradicts Bailout Bill Premise and Details
- Over 150 economists - Hundreds of Economists Urge Congress Not to Rush on Rescue Plan
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