Telling

clipped from www.qando.net So Paulson's billions divert credit from working capital to long-term mortgages - from where it's most needed to where it's most wasted. Even if the giveaway adequately props up the banks, which I doubt, they still can't make working capital loans, because the raw material they used (commercial MM deposits) will be desperately short. I think it's very telling that in two days of hearings and two weeks of discussion we have yet to see *any* detailed mechanism for how Paulson's plan will increase the supply of, say, inventory loans. It's not that every economist in the world is an idiot, it's just not going to help. I think people have fallen into the fallacy that if it costs a lot it must be valuable. Paulson's plan falls into the category of very expensive way to hurt ourselves.