FYI: Your link doesn't open, and this alternative 'plan' is still pixiedust: Nothings laid out in any detail whatsoever, no numbers are given, and I don't even see causal links between the asserted fixes for the asserted problems.

No, I don't like the paulson plan- but the idea that tax-cuts and more de-regulation are going to fix an immediate crisis is absurd. In as much as it deals with the securitization, it just proposes an alternate vehicle- that the government is going to issue 'insurance'... which has all of the problems of purchasing the assets (how do you price them, etc), but does not provide any liquidity.

Furthermore, it assumes that private equity is going to come gushing from somehwere in unchecked torrents. But the problem is that private equity is illiquid at the current time! Buffet stepped in with 5 billion, and he controls one of the largest and most successful holding companies in the western hemisphere, and he won't touch the derivatives and swaps!

Paulson says lets buy up 700 billion of this crap for over-inflated value and hope it frees balance sheets enough to stave off widespread collapse and calms the waters in the short term lending biz. I hate that plan, but this so-called alternative is idiotic! Its 'Faith Based' economics!

Yeti