On September 19th, Treasury Secretary Henry Paulson made a speech regarding the [[Troubled Assets Relief Program]] (TARP) to allay the fears of investors:
I am convinced that this bald approach will cost American families far less than the alternative—a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion.
Unfortunately, the key phrase in this passage was widely mistranscribed in the media as a “bold approach.” But now that more details of the new Troubled Asset Relief Program have being released, Secretary Paulson’s true intentions are clear.
Chris Carey of Bailout Sleuth writes:
The Treasury Department tapped James H. Lambright [above center], head of the Export-Import Bank, as the interim chief investment officer for the $700 billion Troubled Asset Relief Program… The bailout program is being directed by Neel Kashkari [above left], who had been senior advisor to Treasury Secretary Henry M. Paulson Jr [above right].
Will this new program stem the global credit crisis? Maybe. But at least we can all agree… it’s a bald move.