No Blank Check for Paulson
George Soros, Financial Times | September 25, 2008
The Bush administration’s financial bailout package is not well received by Congress – and rightly so. ++ There should be no “blank check,” given Henry Paulson’s maladroit leadership. ++ Obama has outlined four cardinal conditions that are imperative to any effective bailout; “these are the right principles.” ++ Moreover, the government should give capital to the struggling institutions, not buy their illiquid assets. ++ The best solution is to rebuild “the depleted balance sheets of the banking system,” accompanied by proper oversight.
