Saturday, September 20, 2008

We could still see a financial collapse:

The peculiar nature of the "Paulson Plan" allows the Treasury Secretary to give money in exchange for any mortgate-related assets, free from any review.

It designed to give Paulson the ability to shove billions of dollars to banks as soon as possible in exchange for paper that cannot be properly evaluated - because that would take time, which cannot be spared.

If time is a critical factor - which it appears to be - then if Congress doesn't get it voted on fast enough, the financial system could lock up.

If it is going to lock up, I'd say it would be within the next 14 calendar days.


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