Mr. Paulson said the $700 billion would not be used to buy up troubled mortgage-related securities, as the rescue effort was originally conceived, but would instead be used in a broader campaign to bolster the financial markets and, in turn, make loans more accessible for creditworthy borrowers seeking car loans, student loans and other kinds of borrowing.
But, he added pointedly, with their financial foundations already shored up by recent government support, “our banks will be more confident and better positioned to play their necessary role to support economic responsibility.”
My Response: From the very beginning, many people knew the bailout idea was a waist of time and would only create a bigger problem for America to solve. There was a lack of faith in the decision that the bailout would help mortgage related issues, but now they bailout has taken a turn. Now Paulson wants to use to money to invest in companies he believes will pay the government back. I believe this was the initial plan for the bailout and the government just needed something to cover it up with. Lets see where our tax dollars go this year.
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