I've been reading more and more about Henry Paulson's idea for the housing market bailout, and I've come to the conclusion that it's a terrible idea for a few reasons.
Firstly, Henry Paulson was the CEO of Goldman Sachs while this whole Mortgaged-backed Cluster Fuck was getting under way, and I just don't think that putting one of the people who was in charge of screwing everything up in the first place should be charged with setting everything strait. Secondly, I don't think that his stated aim of drastically overpaying is the best tactic for solving this problem especially since the whole problem we had when we were drunk on credit was that the credit wasn't being valued accurately. Deliberately miss valuing assets is by no means a way to solve a problem the originally arose from inaccurate asset valuations, and if Henry Paulson thinks that really would be the best solution then I have to refer you back to my first point.
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