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Indeed, even without the $700 billion bailout, Paulson has already written some big checks - to cover the subsidized sale of Bear Stearns to JPMorgan, the nationalization of mortgage monsters Fannie Mae and Freddie Mac, the bailout of insurance giant AIG and the sales of Washington Mutual to JPMorgan and Wachovia...

Author: /time Magazine | Title: The End of Prosperity? | 10/2/2008 | See Source »

On Sept. 29 alone, governments from Germany to Iceland rushed to prop up five ailing financial institutions with huge cash infusions or full-blown nationalization, making it one of the grimmest days in the history of European finance. Among the high-profile casualties were Fortis, Belgium's largest bank; the...

Author: /time Magazine | Title: Europe's Bank Scare | 10/2/2008 | See Source »

The Sins of Our Fathers In response to the Sept. 22 article "Bailout Nation," wouldn't it be helpful to just call a pig a pig? In the article, no mention is made of the fundamental reason for this huge bailout of the mortgage industry: The failed mission of the...

Author: /time Magazine | Title: Inbox | 10/2/2008 | See Source »

The government is much more responsible for this mess than Wall Street is, by failing to reform government-backed mortgage giants Fannie Mae and Freddie Mac in 2005 and by allowing subprime mortgage loans to be made to unqualified buyers. Forrest S. Walters, Erie, Pennsylvania

Author: /time Magazine | Title: Inbox | 10/2/2008 | See Source »

The U.S. government can and should encourage buyers to head back into the real-estate market by announcing that people who buy a home during the next year will be exempt from federal income tax if and when they later resell that home for a profit. Driven by the profit...

Author: /time Magazine | Title: Inbox | 10/2/2008 | See Source »

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