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...Brown was by no means alone in his folly. Banks and financial institutions throughout the Western world acted as if the economic cycle was a thing of the past. Instead of understanding that the longer the debt-fueled boom lasted and the greater the debt burden became, the greater would be the carnage when the inevitable day of reckoning arrived, they acted as if the longer the good times lasted the more they could be regarded as a permanent fixture...

Author: /time Magazine | Title: Back to Reality | 10/1/2008 | See Source »

...politics, to finish the circle, might end up being more important for future jobs than one would think. A little-noticed provision added to the bailout bill over the weekend would, in five years time, remove the burden of today’s bank woes from the backs of taxpayers and dump them right back from where they came. If the troubled-securities bought by the Treasury Department aren’t worth what the Treasury paid for them, the president must submit a plan to use new taxes to recover the government’s losses from the finance...

Author: By Paras D. Bhayani, CRIMSON STAFF WRITER | Title: Wall Street Meltdown | 10/1/2008 | See Source »

...President Bush’s sentiments, Senator John McCain proclaimed, “Never before in the history of our nation has so much power and money been concentrated in the hands of one person.” In a way, President Bush is correct when he puts the burden on Congress to act. But, it should act on the American people’s interest and not Paulson’s. To Congress’s credit, it proposed some limitations on Paulson’s power in the plan. That said, these modifications were not adequate to make...

Author: By Nafees A. Syed | Title: Hank Paulson: CEO of America | 9/29/2008 | See Source »

...padding of a handful of corporate pocketbooks. On the other, conservative republicans must see that in so severe a crisis, government intervention into the market is necessary to limit the extent failures in other parts of the American economy. Other detractors of the plan have pointed out the undue burden on American taxpayers, but the price of stability may not prove so high if the Treasury can shrewdly make a profit from the assets they purchase. The $700 billion price tag, however, appears to have been derived somewhat arbitrarily—especially considering that the targeted assets evade precise valuation...

Author: By The Crimson Staff | Title: Secure Our Securities | 9/28/2008 | See Source »

...while the Bush Administration bailout plan does require an unprecedented outlay of taxpayer funds, White House officials say the cost of a crippled economy would be an even greater burden on average Americans. Treasury Secretary Henry Paulson believes that while the House Republican proposal would help moderate the current crisis, it wouldn't be enough to do the job. Nor is it the most effective way, Treasury officials argue. Leaving those toxic mortgage-backed assets on financial institution balance sheets, they say, would not provide the additional liquidity that banks desperately need right now to get the nation's paralyzed...

Author: /time Magazine | Title: Can Congress Build a Better Bailout? | 9/26/2008 | See Source »

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