Monday, March 10, 2008
"Any debate about a housing bailout can be put aside--the bailout is underway, even in advance of specific plans being shopped around Washington by Bank of America to prop up home prices with direct subsidies to homeowners whose debt exceeds the value of their houses. ... But this time, the liquidationist school has been routed--so named for Herbert Hoover's Treasury secretary, Andrew Mellon, who said' 'Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. ... It will purge the rottiness out of the system.' ... So here's the question: Do the people who would be bailed out want to be bailed out? Do they benefit from being bailed out?", Editorial at the WSJ, 27 February 2008.
See my 21 November and 10 December 2007 posts. Who is Hank Paulson's Treasury trying to kid? The thrust of all its efforts is to protect the banks, not the peasants.