If you want to get a good handle on the kind of toxic waste Hank Paulson and Congress think we need to buy, read “Behind the Housing Crash: Confessions from an Insider” by Aaron Clarey (better known as “Captain Capitalism”). Clarey was an analyst for several banks in Minnesota from 1998 to 2007 and he witnessed the utter destruction of lending standards over the last decade.
Clarey makes an important point — there would be no crisis if individuals and businesses who had promised to pay back their loans were doing so. The vast majority of those who are not paying back their loans are not victims – they are irresponsible. There are also a lot of careless banks, lenders, politicians and investors who enabled unworthy borrowers to get these loans. Why American taxpayers must pay for this nonsense still has not been adequately explained by the White House, the Treasury or leaders on Capitol Hill.