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Radical Measures May Be In The Wings
Posted By admin On October 10, 2008 @ 10:05 am In Economic Crisis,Old Infowars Posts Style | Comments Disabled
October 10, 2008
As the financial crisis threatens to spiral out of control, it’s more likely Treasury Secretary Henry Paulson will take extraordinary steps through the extensive authority granted to him under emergency rescue legislation, say analysts.
With the legislation’s main mechanism—an auction system to purchase bad mortgage-based securities—still weeks away from implementation, Paulson may have to inject capital into any number of financial institutions—even non-depository ones like investment banks, insurers and hedge funds.
“I don’t wish to spread alarm on the line people but the big issue confronting the market is I’m afraid the health and sustainability of Morgan Stanley and Goldman Sachs,” Hugh Hendry, Partner and CIO at Eclectica, told CNBC. “It is unimaginable that they can be allowed to go, I suspect that they will nationalized at some point today or over the weekend,” he add.
Some say the Emergency Economic Stabilization Act of 2008’s vague language gives Paulson almost unlimited power to intervene.
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