Bail Out the Homeowners! Why Paulson's Plan is a Fraud | WHAT REALLY HAPPENED

Bail Out the Homeowners! Why Paulson's Plan is a Fraud

By PAUL CRAIG ROBERTS

Is the Paulson bailout itself as big a fraud as the leveraged subprime mortgages?

Yesterday, here on CounterPunch, I discussed the bailout as proposed and noted that the proposal cannot succeed if it impairs the US Treasury’s credit standing and/or the combination of mark-to-market and short-selling permits short-sellers to prosper by driving more financial institutions into bankruptcy.

A reader’s comment and an article by Yale professors Jonathan Kopell and William Goetzmann raise precisely this question of the fraudulence of the Paulson package.

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