"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."The more I hear about this the more I think it's just a scam.
-- Forbes.com (via)
Update: The buzz on the web is that Congress is close to a deal -- so far as I can tell, a $700,000,000,000 deal. So what Matt Yglesias said:
Doesn’t this seem like a very strong argument for a much smaller appropriation designed to last for another couple of months? There’s nothing to stop congress from appropriating more money in mid-November if the situation seems to warrant it.Of all the things under negotiation, the amount seems like the first thing to fight on. Given that it was just pulled out of nowhere.
If it's a scam, might as well make it a smaller scam than they want. If nothing else.
While it sounds better than the Monarchy bill that Paulson first approved, the bill that's being described sounds -- if rumor holds true -- far, far, far worse than what the Democrats should hold out for.
But then, if this is class warfare, then ultimately the Democrats and the Republicans are on the same side: that of the rich.
It sounds like the rest of us might be about to get the shaft.
2nd Update: Don't believe me? I don't blame you. So listen to Paul Krugman, someone who actually understands these matters:
My sneaking suspicion is that they started with a determination to throw money at the financial industry, and everything else is just an excuse.It's just a scam.