Take Another Little Piece of My Bailout

Note that even if the strong version of the maybe there is no crisis theory is wrong, it’s doubly unclear why Hank Paulson needs $700 billion this week since he’s clearly not going to spend nearly that much by Halloween.

If congress feels like taking Paulson at his word, they can appropriate some fraction of $700 billion deemed adequate to tide Paulson over until November, add on a second stimulus and some measures to start reorganizing mortgages, and then let everybody keep studying the issue. Then if Paulson wants more money after the election, he can send a request that’s coordinated with the president-elect’s transition team to the lame-duck congress. Why should a rushed process commit us to spending months from now?