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Paulson's Reasons for Delaying Day of Reckoning: Jonathan Weil

Commentary by Jonathan Weil

Oct. 2 (Bloomberg) -- If you think this bailout is
expensive, just wait until you see the next one.

The $700 billion rescue plan approved by the U.S. Senate
won't fix the core problem with the nation's ailing financial
institutions. And it almost guarantees that you and I will have
to pony up for an even costlier bailout someday, maybe soon, if
the House of Representatives passes it tomorrow.

Treasury Secretary Hank Paulson has correctly identified the
quandary: Lots of shaky banks and insurance companies are showing
strangely high values for assets that aren't worth squat in the
market. Many need more capital and can't raise it. And he's right
in saying the outlook is grim if we don't get this fixed.

What's stunning is how little the taxpayers would get in
return for their money under Paulson's package, and how illusory
much of the banks' new... >>>