– Responsibile taxpayers should not be liable for irresponsible Wall St decisions
– Largest bailout in the history of any country in the world
– Handing over of Wall St to Penn Ave
– Other sectors and companies will also want a bailout
– Moral hazard
– It does not not guarantee to solve the problem
– It does not address the fundamental problems (overleverged and falling home prices)
– There has not been a clear case made on what exactly would happen without such a bailout
– There will be a request for even more money if it does not work
– Corruption is inevitable with so much money at stake
– Will double the yearly federal budget deficit
– Assets will be unloaded to the government above current market prices
– No guarantee of any buyers after the government buys them
– The FED/Treasury have never been honest about the situation. Before they say the subprime is contained, now they say that they must act soon.
– The FED/Treasury have been trying many different measures for the past year to control the problem, but has not been able to. Why should we believe they can do it now?
– Sounds so much like blackmail, “Give us a blank check and unlimited power by the end of the week or the whole financial system will collapse.”
– Bernanke and Paulson have never publicly stated that a financial collapse is imminent.
– No time for a full debate among Congress
– No figure given on the chance of a total collapse. What is it – 100%, 50%, 5%?
– Paulson is leaving office this year. $700B can make a nice golden parachute.