America's economic model during those years basically consisted of borrowing money from foreign countries, and spending that money buying assets (first tech stocks, then houses) back and forth from each other at ever-ratcheting prices.
No way we come down off that bender without the mother of all hangovers.
The Paulson plan is not going to avert this. Adding more debt is not the cure to a hyper-leveraged economy.
I'm not pretending that the economy is great, or that life will magically become sweet once all the investment bankers are strung up.
I'm saying that the Paulson plan as currently presented will have the effect of giving the status quo a life support extension and ensure an even harder crash when its effects wear off.
The Paulson plan is the difference between a recession and a severe recession or depression.
The Paulson plan is the difference between a recession and a severe recession or depression.
Ridiculous.