Reuters published a handy summary of Paulson's bail out proposal along with the counterproposals by Democrats and Republicans :
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• Would allow up to $700 billion in mortgage assets to be held by Treasury at any one time.
• Allows the Treasury to buy any mortgage-related assets, both residential and commercial, for a two-year period. The plan does not detail the types of mortgage assets this could cover and or how long the government could hold them, and does not establish how they would be valued. However, if deemed needed to promote financial market stability, any type of financial instrument could be bought.
• Assets must have been originated or issued before September 17, 2008, by a financial institution having "significant operations" in the United States. This provision could also be waived if deemed needed to promote financial stability.
• Assets could be bought from any financial institution, including but not limited to banks, thrifts, credit unions, broker-dealers and insurance companies. If deemed need(sic) to promote financial stability, however, assets could be purchased from non-financial companies.
  

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Many bloggers think of Lou Dobbs as a wanker. I have always thought of him as a markets journalist with more than a few interesting things to say.

Can I hear a witness for "faith-based free trade"? Oh yeah, baby, preach it! :

Eye-glazing stuff, international trade. But the consequences of faith-based free-trade will be eye-popping in the disaster it wreaks on our economy and working Americans. The facts are anything but dull: For 30 consecutive years the United States has run a trade deficit, and our trade deficit has surged to record highs in each of the past four years. Our monthly deficits have reached record levels in two of the past three months.

Our current account deficit -- the broadest measure of international trade -- is on track to approach $1 trillion this year. And our current account deficit is almost 7 percent of our nation's gross domestic product, considerably above the threshold at which Federal Reserve studies have acknowledged our economy must make policy adjustments or face major financial crisis. We're borrowing about $3 billion a day just to pay for our imports, and our trade debt now stands at $5 trillion.

We will no longer have to be patient to see the impact of these faith-based policies in free trade. Signs are already beginning to mount that a reckoning is nearing. Our trading partners in Europe are counseling "vigilance" in the currency markets, as their anxiety rises with the value of the Euro against the dollar. For the first time, the Chinese government is publicly expressing its concern about the more than $1 trillion it holds in reserves.

But most disturbing of all are the comments of new Treasury Secretary Henry Paulson, who said in London Tuesday, "A strong dollar is clearly in our nation's interest and I feel very good today about the strength of the U.S. economy," as the U.S. dollar hit a 20-month low against the Euro. Treasury secretaries are not paid for their candor, but Paulson's rejection of our current reality won't bolster his credibility with either our trading partners or the new Democratic-led Congress.

Source

When I travelled earlier this year to Amsterdam and walked into an H&M store, I was hit by the painful realization that having dollars in my pocket didn't and couldn't get me far in the European city. A sweater that costs me 39 dollars in the US costs me 39 euros in Holland. Fair trade for a bargain seeker? Of course not.
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