The old saying goes. "If you dance to the music. You got to pay the piper." America has been dancing for the last fifteen years and now we have to pay. It stands to reason trouble would rear it's ugly head in the mortgage banking industry. There lies the most expensive single purchase of the average family in America. Anyone that has a mortgage they can't meet or is in danger of foreclosure. Not because they lost their job or their health failed or something else beyond their control. Other than the fact that they just signed on to a loan that they couldn't afford. They don't bare all the blame, but the lions share.If you are one of the 1.8 million people who took out a loan for up to a 125% of the value of the purchase.You are equally responsible for the mess we're in right now.
Henry Paulson is going to be either the deliverer or the sacrificial lamb here. He may very well be the most important man in American finance today. He was the one Barack Obama was errant in referring to when he said " we can't put $700 billion in one man's hands." Somebody has to do it; why not him? He has prepared for this job all his life. I don't envy the weight he has on his shoulders. Read a short bio of his background : http://www.whitehouse.gov/government/paulson-bio.html If you can prepare for a dilemma such as we are facing now. He has put in the necessary work. He is a seasoned rider. This is not his first rodeo. What I think we are witnessing here is the United States reorganizing their debt. I think I've seen something like this before. The government is just doing what has been abused by so many of it's citizens. Bailout is just another word for bankruptcy.
Read what Henry Paulson has to say:
http://www.pbs.org/newshour/bb/business/july-dec07/paulson_12-06.html
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