Hank Paulson, Ben Bernanke and Christopher Cox sat like school children before the Senate Banking Comittee today, getting grilled on the specifics of their bailout plan while the senators scolded with indignation, hoping to catch the eye of their constituents.
In the midst of this spectacle we learned some rather scary stuff. Chiefly, the Fed intends to pay well above the price banks currently mark their garbage assets at, under the assumption that these assets will be worth something in the near future and the banks wouldn’t sell them unless they get a premium. In essence, the Fed thinks it needs bribe these banks to part ways with assets so crappy they’re going to bankrupt the banks. It’s that type of rock solid logical that’s kept our economy in such great shape.
In case you missed it, here are a few ways to catch up on what happened this afternoon in Washington as Congress seized upon its opportunity to grill Paulson, Bernanke and Cox.
Our brethren at Clusterstock have their own view on what happened.
Aaron Task of Tech Ticker live microblogged the event via Twitter.
The Times live blogged the event.
MSNBC had a live feed of the hearing, and now they’ve got a ton of clips to look at.
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