We have had all our eggs put in the Federal basket and then didn’t watch it. Even if we did watch it, we were told our eyes lie. When Secretary Paulson says he must have 700 billion, in days, to buy home mortgages, and then days after the bill says he’s not going to buy mortgages, we like good Germans did Hitler, pretend he never lied to us.
What Paulson did was obtain plenipotentiary power over the disbursement of 700bil. I imagine a certain percentage of that money is guaranteeing the prosperity of him and his progeny after he leaves government “service” as well as that of friends and allies.A lot of that money, that which Paulson and his GS allies manage to get their arms around will be transformed into inflation-proof forms, like gold in off-shore locations. Cayman Islands will prosper mightily from this economic collapse.