October 4, 2008 Finance General 0

Administration rushes to begin financial rescue – Economy in Turmoil- msnbc.com

Paulson..the head of one of hte big five banks that no longer exist is now taked with trying to rescue the economy..oh this is going to be painful to watch considering how badly leveraged most american households(not this one though).  Hang on folks.  Thing is..the actual effects aren’t really known despite the prognostications of the gov’t.  Due to the way the tax code is written if the banks can sell these bad loans to the gov’t at a loss then they write off these losses on their taxes which reduces the income to the treasury and therefore adds to the cost of this bailout.  Also consider that the other news of the economy is going negative.  Wasn’t the bailout supposed to help main street?  It helped wall st but it’s going to screw main street.