1. The $700 Billion limit.
2. The reporting to Congress after three months and semiannually thereafter.
3. The two year limits of the bill.
The $700 billion is $700 billion AT ANY ONE TIME. The entire portfolio of bad loans of any of FNM/FRE/C/LEH/AIG and the liabilities created by the CDSs written on same could be cycled through HP’s credit line $400-$500-$600 billion at a time.
Since there is explicitly no limitation upon what HP can do, nor is there any ability nor recourse upon any action he might take, which would presumably include lying to Congress as to the progress being made (or not) disposing of these toxic assets, such limits are no limits at all. Forget not that before any and all of this reached critical mass, the sub-prime issue was “contained” according to Mr. Paulson. Then we got the Fed-financed BSC takeunder. Shortly thereafter, FNM/FRE were “well capitalized” despite having paid fines for shifting their earnings and having not filed adequate financials for some three years. KaBoom on Fannie. Then, LEH was NOT to be bailed out. But the Tsy STILL furnished some numbers of billions in order for LEH’s TTT (Toxic Trove of Trash) to be unwound. Then, AIG would not get bailed out. Then, AIG DID get a bridge loan (which I don’t consider a bailout...I consider it highly draconian) and now this.
You’ll excuse me, but Mr. Paulson has a well-documented history of lying.
I am not sure you read my entire post. Did you read the part that said: “We can argue as to whether these limitations are appropriate or whether more are needed. Hopefully that is what our representatives are doing!”
As for your comments regarding Paulson, what are you recommending?? Shall we go ahead and fire him too??