CHESSNOID

Have you noticed that everytime Paulson makes a cameo appearance, the stock market falls.  It wasn’t even bad news this time.  He just changed the intent on what to do with all that Fraud Bailout.  In the beginning, he wanted no oversight and wanted to do whatever he pleased with it.  The House rejected that and later approved it with those stipulations and more, but he really is doing whatever he wants.  Some of the money is going to pay for wall street executives of otherwise bankrupt companies.

Now, he has changed his mind about buying bad mortgages and wants to buy stakes in banks. Sounds fishy if you ask me.

NEW YORK (AP) —

An already disheartened Wall Street turned sharply lower Wednesday after Treasury Secretary Henry Paulson said the government won’t buy banks’ soured mortgage assets after all, disappointing investors who hoped to see the bad debt wiped off companies’ books. The Dow Jones industrials fell more than 270 points, and all the major indexes dropped more than 2 percent as the market retreated for a third straight session.

Paulson said the government’s $700 billion financial rescue package will not purchase troubled assets from banks as originally planned. He said that plan would have taken too much time, and that the Treasury instead will rely on buying stakes in banks and encouraging them to resume more normal lending.

While the market had been pleased by the government’s decision weeks ago to buy banks’ stock, investors still hoped to see the financial industry relieved of the burden of the mortgage assets whose decline in value helped set off the nation’s financial crisis.

This is how the numbers look right now. Ouch!