Treasury Secretary Henry Paulson is talking up the President's 700 Billion dollar super bailout plan. He's saying how it was the least costly option like he was choosing Delta faucets over solid gold bathroom fixtures.
Is he kidding? I am not a hamster, it seems to me that if he and whoever else thinks that 700 billion dollars is least costly then the situation has gotten so far out of hand that right now all they can hope to do is put the fires out and get this thing under control asap.
We're talking about financial institutions that hold a hefty chunk of the mortgages and other loans in this country. Because they hold so much and because of the disaster that would occur if even one more really big one was to go under, bailing them out isn't just the 'least costly', it's the only option at all.
The big thing though is that once this bailout band-aid is applied, something needs to be done to prevent the wound from opening again. That is going to mean applying some serious changes to the financial industry. Something has to be put in place to prevent the collapse of any one or six of them from crippling our economy. That's going to mean that no one of them can be allowed to hold more than a certain percentage of the total loans out there.