Memo to Treasury Secretary Hank Paulson: A Gov’t Bailout of the Mortgage Industry Is Terrible Public Policy
On Wednesday, Governor Arnold Schwarzenegger announced his intention to sign several bills in response to the economic challenges faced by the subprime real estate market downturn — bills aimed at strengthing disclosure laws.
We need to contrast these appropriate responses with the apparent desire by President Bush’s Treasury Secretary, Hank Paulson, to take a page out of the Presidency of Jimmy Carter, and promote welfare-statist approach to dealing with the negative effects of the market downturn on subprime lenders and their customers.
Did Secretary Paulson (pictured) learn anything at those Ivy League schools he attended? Even though some see him as a Godfather figure, you don’t have to be an Ivy Leaguer or Wall Street honcho to understand that rewarding poor behavior… Read More