Like it or not . . .
. . . Sec. Paulson has come up with a plan and, as a country, we must now answer a question of our own making: Will the $700 billion Paulson Plan do what it needs to do? I have identified four questions, the answers to which could determine the effectiveness of the coming bill. The questions reflect my understanding of the financial collapse, its underlying causes, and its key implications going forward.
1. Will the Paulson Plan put a bottom to falling house prices and stabilize credit flows?
2. Will it expand regulation, oversight, and transparency -- or at least enforce already existing laws -- governing credit flows?
3. Will it initiate an era of fiscal and monetary responsibility?
4. Will it reflect a step forward in the direction of understanding hedge funds and the practice of short-selling (i.e. betting against companies)?