Tuesday 10/14 ... Shorthand Notes From Paulson Speech (our comments in parantheses)

• (all below written in first person from Paulson's point of view)
• 
  
• There is a lack of confidence in the economy right now (duh...)
  
• Recent weeks, Americans have felt effects from frozen financial system (duh...)
  
• Bush directed me to take all necessary steps to get credit flowing again
• We regret having to take these decisive actions to correct the economy. It's not what we want to do, but what we must do.
• Officially announcing the government will be purchasing a stake in banks and thrifts. I DON'T Like this, but it's necessary.
• 250 billion in capital available in the form of PREFERRED Stock
• Restrictions on executive compensation. Ban on Golden Parachutes
• Taxpayers will not only OWN SHARES, but will also receive warrants for common shares in participating institutions.
• foreclosures are bad. we're trying to prevent them
• Some banks are reasonably strong, but not in a position to lend
• Our goal is to see WIDE ARRAY of banks sell shares to us and raise money on their own so we can pump up the lending.
• 9 large institutions have already agreed to sell preferred shares on the same terms that will be available to everyone else.
• Firms have until november 14th to participate.
• "market participants here and around the world can take great confidence. We are acting with unprecedented speed and taking great measures." (hello!? Asia? PLEASE buy our MBS! Please Please Please!?)

Bernanke to follow.