Paulson to mortgage holders: “Never mind.”

That was certainly short lived. From Reuters:

The Bush administration on Wednesday largely abandoned its plan to buy up toxic mortgage assets and said it will focus its $700 billion financial bailout fund on making direct investments in financial institutions and shoring up consumer credit markets.

It dawned on me this evening the Paulson was in effect putting McCain’s proposition into works. Guess that didn’t go over so well.


  1. The Paulson plan was to buy mortgage-backed securities, not the mortgages themselves. It really wasn’t anything like McCain’s plan.

  2. Ah, thanks for the clarity.