I believe I'd be a lot nervous about this change in plans for the $700 billion that was supposed. It doesn't surprise me, however, that the Bu$hCo assministration can't do anything right, nor can they keep their word. I suppose Bu$hCo wrote a signing statement about this bill that allowed him to pretty much do whatever he wanted, without consultation with the Congress. I can't wait for the whole lying bunch to be gone.
In a news conference, Paulson acknowledged that the automotive sector is vital to the U.S. economy but repeated that he doesn't think that the Wall Street rescue money should be used to help it. The money, he said, is supposed to be used to boost the financial sector and thus spark greater lending.
The treasury secretary said he wasn't ruling out a proposal from the Federal Deposit Insurance Corp. that would spend rescue money to help write down distressed mortgages and keep people in their homes. Such a plan requires spending, not investing, as has been the approach with bolstering banks' balance sheets. Officials hope that the invested funds will be repaid when the banks return to profitability.
However, that point contradicts Paulson's plan to subsidize investors in the purchase of complex securitized assets, since that too appears to involve spending rescue money rather than investing it.
What does Paulson, et. al., care about the U.S. auto industry, they're all driving the great cars from Europe. Let them drive junkers.