Paulson Will Morph Toxic Banks into Toxic US Dollars

Stock-Markets / Credit Crisis Bailouts Sep 22, 2008 - 07:46 AM
By: Michael_Swanson

This Doesn't Have to Happen - On Thursday right before CNBC reported on rumors of the bank bailout plan, Ben Bernanke was meeting with lawmakers and selling the plan to them. Inside a conference room that is part of Speaker of the House Nancy Pelosi's office he was meeting with the Congressional leadership. According to the Washington Post he told them that if they don't pass the plan "it will be nothing short of disaster for our markets." He claimed that stock mark et would crash and money market funds would get wiped out.

In a conference call with Republicans on Friday Bernanke said, "many of your constituents hold money in money markets — those funds are losing money" and now the "critical issue is what do we do about these bad assets clogging up our credit system.â€