Away from Wall Street, Economists Question Basis of Paulson's Plan

washingtonpost.com

Away from Wall Street, Economists Question Basis of Paulson's Plan
Treasury Secretary Henry M. Paulson Jr.'s rescue plan rests on the government buying troubled mortgage securities.

The Bush administration's pitch for a sweeping bailout of the financial system has centered on two simple premises: that the economy could suffer a crippling downturn if action is not taken very quickly and that this action should consist of the government buying troubled mortgage securities from banks and other institutions.[continue]