The magic of the Paulson plan is that it creates the illusion that the mortgages have some value.
With the Paulson plan, the taxpayer ends up owning toxic assets of questionable value.
While Congress has been debating the Paulson plan, there is another financial rescue option that many economists prefer.
But the financial industry is almost certain to embrace the Paulson plan over one being kicked around in the Senate.
The Paulson plan is aimed at ensuring that both institutions have enough liquidity to conduct their day-to-day businesses of buying mortgages.
"The Paulson Plan is dead, " he told reporters late Thursday night.
U.S. Treasury Secretary Henry Paulson is working on an interest-rate freeze with big lenders, and some politicians would go a lot beyond the Paulson plan, with moratoriums on foreclosures.
Both Volcker and Summers suggested that no radical new regulations from the so-called Paulson plan for overhauling Wall Street will take place this year--indeed, none of these changes would likely be made until well after there is a new administration in the White House next January.
It looks like it will take more than the American government's "Paulson Plan" to restore confidence to Europe's financial sector: governments in Europe raced to prepare a fresh round of bank rescue packages on Monday, but banking stocks fell more than 7.0% and credit markets remained frozen as the likelihood of a continent-wide initiative began to fade.
But there is plenty for everyone to dislike about aspects of Mr Paulson's plan.
If the economics of Mr Paulson's plan are broadly correct, the politics are fiendish.
And there is intense pressure on Congress to act swiftly to approve Paulson's plan and ease growing tension.
Paulson's plan does not protect the investors of these securities--increasingly, as it turns out, public pensions and other public funds.
Mr Paulson's plan is stunning in its brevity (two-and-a-half pages) and audacity.
Housing advocates call Paulson's plan weak, saying it falls way short of the Bush administration's purported goal of keeping people in their homes.
Mr Paulson's plan relies on buying vast amounts of toxic securities.
Treasury Secretary Henry Paulson calls the plan extensive, powerful and transformative.
"This evening, after working with the companies, the Federal Reserve, and other regulators, Treasury Secretary Paulson outlined a plan that we believe will help add stability during this period, " the White House said.
Secretary Paulson unveiled his plan as a three-page talking points memorandum more than a week ago, saying it was time to stop dealing with crises as they arose and get to a more general plan that would calm the markets once and for all.
U.S. Treasury Secretary Henry Paulson knows his sweeping plan to overhaul the financial regulatory system is going nowhere soon.
"That oversight is absolutely essential, " McCain said, also arguing against the unprecedented power granted to Treasury Secretary Henry Paulson in managing the plan.
Earlier this year, Treasury Secretary Henry Paulson put forward a plan that would have combined the nation's various financial regulatory offices, including the SEC.
Because the government-sponsored enterprises (GSEs) are congressionally chartered, "only Congress can address the inherent conflict of attempting to serve both shareholders and a public mission, " said Paulson in announcing the plan.
Lawmakers are furiously trying to find common ground on a bill that will reduce foreclosures, and earlier this week, Paulson unveiled a lofty plan to overhaul the nation's financial regulatory system.
Some banks would still not have enough capital, but under Mr Paulson's original plan, the state could put equity in them, or, if they become insolvent, take them over and run them down.
The day Paulson unveiled his financial rescue plan, Kashkari addressed the American Enterprise Institute.
We're waiting to see if Hank Paulson and Ben Bernanke have a plan.
Paulson's bad-asset rescue plan would join a bunch of other proposals now circulating Washington.
This, even though Paulson himself has touted a foreclosure relief plan that critics have said is too little, too late.
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