Why Is Everyone So Desperate to Spend $700Bn?

Why Ben Bernanke and Henry Paulson are anxious to push through a rescue package.

Eric Jacobson 26 September, 2008 | 12:25PM
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United States Treasury Secretary Henry Paulson and Federal Reserve chief Ben Bernanke have spent much of this week in Washington on Capitol Hill warning Congress of the dire consequences that will follow if legislators don't approve a package to rescue the financial system.

What's most interesting to me is that the firestorm of objections this plan has raised is coming from both ends--and in many cases the extreme ends--of the political spectrum. Fortunately, most lawmakers appear intent on extracting concessions that give them some oversight and control, or perhaps fulfil policy goals they believe should be concurrently addressed. At this moment anyway, it still seems likely that a package of some sort will be approved albeit not as quickly as we initially thought.

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Eric Jacobson  is director of fixed-income research with Morningstar.

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