A trillion here, a trillion there

A good blog to follow the bailout on Wall Street may be Daily Kos: State of the Nation and another Mish's Global Economic Trend Analysis. I'll put Mish's feed into the blog. Here is a sample from the economist Mish:

"We're going to be buying up a lot of mortgage paper" said House Financial Services Committee Chairman Barney Frank.Sadly, that will not do a single thing in and of itself to stop foreclosures. All that will do is bail out banks and brokers at taxpayer expense.Barney Frank also stated “We should be more willing to write down the mortgages. We’ll become the lender. The government will wind up in a controlling position so that we can reduce the number of foreclosures.”Congress needs to ask "How much extra will Barney Frank's proposal cost taxpayers?"Were does the madness end?As stated earlier the problem is not housing in the first place, and besides, taxpayers who pay their mortgages on time should not be subsidizing those who don't!

Paulson wants to recapitalize banks so they can keep lending. Ironically, one of the problems is lending. The US has been on a credit binge to such an extent that I have to ask what more do we need? More Pizza Huts? More Home Depots? More Houses? More Nail Salons? More Car Dealers? What?What is the urgent need to lend still more?We are in this mess because of too much reckless lending. We do not need more lending, we need more saving!Paulson's idea that more lending is needed is ass backwards. Paulson's proposal cheapens the dollar, and discourages the one thing that is desperately needed: saving.