Tony Rand

Secretary Paulson Does the Right Thing, Again

Right or wrong, Paulson mislead the country and is himself adding to the growing problem of fiscal irresponsibility. One purpose TARP had was to allow for modifications of legitimate mortgages. ABS and other SIV instruments contain prohibitive restrictions that prevent modifications from taking place - at least to the extent needed to prevent unnecessary foreclosures. Taking ownership of those assets would have removed the restrictions. Shoving $125 billion down the throat of BofA (and eight other large financial institutions) is not going to resolve the foreclosure or credit crises.