Pick A Number, Any Number. Okay $700 Billion
In fact, some of the most basic details, including the $700 billion figure Treasury would use to buy up bad debt, are fuzzy.
“It’s not based on any particular data point,” a Treasury spokeswoman told Forbes.com Tuesday. “We just wanted to choose a really large number.”
As as us forecasters like to call it, “A number pulled from one’s ass.”
Yet another reason to oppose the current bail out plan. It basically gives Paulson $700 billion to distribute as he sees fit. At this point I say, simply add $700 billion to the economy via Federal Reserve actions. It is based on just as much analysis as the Paulson plan.
What is even more amusing is that the keystone kops, a.k.a. the Bush Administration, didn’t get the memo out in time to everyone about how the $700 billion number is generated,
Fratto insisted that the plan was not slapped together and had been drawn up as a contingency over previous months and weeks by administration officials. He acknowledged lawmakers were getting only days to peruse it, but he said this should be enough.
So which is true? The $700 billion was pulled out of Paulson’s posterior (or Bernanke’s Butt) or it was the result of some sort of analysis?