Thursday, October 2, 2008

Mr. X Has Read the Senate Version of the Paulson Plan...

...so we don't have to.

The Paulson Plan as submitted by Treasury Secretary Paulson was three pages long. It is now 250 pages. Mr. X read all 250 pages of the legalese and submitted a report to Lew Rockwell.

In his report, he writes:

I read the whole thing myself -- and found odd things like production credits for "marine renewables" and specifications for "residential top-loading clothes washers."...

Loopholes: A financial institution can buy $50 billion of financial toxic waste in the form of subprime mortgages, declare bankruptcy, and the Treasury Department is permitted to buy the toxic waste for $60 billion. Or $100 billion...

The U.S. Treasury would be authorized to "guarantee" home mortgages, essentially becoming a co-signer, to eliminate foreclosures. If the home-owner stops paying his mortgage, taxpayers will be on the hook. The Treasury Department can also eliminate a "reasonable" amount of a home owner's mortgage debt...


After Mr. X concluded his review, the Senate version was changed again with NyPo reporting these developments, on what is now a 451 page Bill:

Special provisions include tax breaks for:

* Manufacturers of kids' wooden arrows - $6 million.

* Puerto Rican and Virgin Is- lands rum producers - $192 million.

* Wool research.

* Auto-racing tracks - $128 million.

* Corporations operating in American Samoa - $33 million.

* Small- to medium-budget film and television productions - $10 million


Read Mr. X's full review, here.

-Robert Wenzel


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