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...Paulson knows this as well as anyone. He and his team had been working on his proposal for more than six months, in the event that more piecemeal approaches like the bailout of Bear Stearns or the takeover of Fannie Mae and Freddie Mac didn't stop the bleeding. When things looked like they were headed for a crisis at the beginning of last week, he had a team up literally all night working with the Federal Reserve to frame a deliberately vague proposal that could make it through Congress. The key issue was to get something that could pass...

Author: /time Magazine | Title: Congress and the Bailout Plan: Business As Usual | 9/23/2008 | See Source »

...billions of dollars of mortgages and mortgage-backed securities that would turn the Feds into the liquidator of last resort for business deals gone bad. Those powers, should Congress grant them, would come on top of authority Paulson was quietly granted earlier this summer to resolve the Fannie Mae and Freddie Mac messes. And the federal fire sale may not be limited to problem portfolios at home; there are reports that some of those entities subject to Treasury's purchase-and-resale powers may be foreign...

Author: /time Magazine | Title: After the Financial Crisis, a Cleanup That Changes Everything | 9/22/2008 | See Source »

...failures, and thus to avoid a further decline in real estate prices through the usage of federal funds. The current proposal is explicit about its monumental cost: $700 billion, a sum larger than the 2009 budget of Medicare and Medicaid, which also dwarfs the de facto nationalization of Fannie Mae and Freddie Mac just weeks...

Author: By Pierpaolo Barbieri | Title: The Bubble Doom | 9/21/2008 | See Source »

Even after committing $285 billion over the past couple of weeks to bail out mortgage lenders Fannie Mae and Freddie Mac and insurer AIG, the Federal Government is now looking to fork over more - much more...

Author: /time Magazine | Title: Washington Prepares the Mother of All Bailouts | 9/19/2008 | See Source »

...speculators, traders or financiers for the market's near-collapse, but instead blames government for having overregulated the markets in the first place. The business leaders bailed out by government this week "are victims," he said, "and the government set it up." Washington underreacted to previous crisis, let Fannie Mae and Freddie Mac spin wildly out of control as quasigovernment agencies while taxpayers piled up unsecured debt in their names. The crisis, he added, was "really fed throughout by government policies...

Author: /time Magazine | Title: What Would Ayn Rand Have Done? | 9/19/2008 | See Source »

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