Friday, October 03, 2008

Why the Paulson Plan Won’t Work

Even if Paulson can come up with $700 billion from Congress, many of the banks are going to fail anyway. They borrowed money short term to buy long-term assets (mortgage backed securities and collateralized debt obligations). Now, the money must be paid back but no one wants to lend short term. Why? The assets are falling in value.

read more | digg story

No comments:

1-11-2025

  Trump, Zuckerberg meet at Mar-a-Lago Mark Zuckerberg lies about content moderation, describes fact-checking program as “something out of l...