D & G predictions for the Paulson Plan

The plan will not save the US economy, and it won’t solve the problems that require a salvation plan in the first place today. Instead, it seeks to re-insert virtual fantasy credit into the economy, taken straight out of the public trough, so that same public can continue to buy homes. But is that in the interest of the people? Home prices are far too high, when set against historical levels. The reason why they are so high is because of cheap easy lying virtual fantasy credit. And that needs to be restored, even though it is the very core of the problem. How is it in the interest of the taxpayer to pay far too much for a home?.

What the government is doing now is making sure that the biggest losses will fall on the taxpayer, not on the banks. That is the plan. The misery unleashed on the American people is hard to oversee, but it will be horrendous.

The story here.