Officials close to Paulson are privately painting a far bleaker portrait of the fragility of the global economy than that advanced by President George W Bush in his televised address last week.
One Republican said that the message from government officials is that “the economy is dropping into the john.” He added: “We could see falls of 3,000 or 4,000 points on the Dow [the New York market that currently trades at around 11,000]. That could happen in just a couple of days.
“What’s being put around behind the scenes is that we’re looking at 1930s stuff. We’re looking at catastrophe, huge, amazing catastrophe. Everybody is extraordinarily scared. It’s going to be really, really nasty.”
If the situation is that bad, how come we were lied to? Oh yes...GOP in charge. Never mind. If there's no deal by Sunday evening when Asian markets open, it could be the end. Preznitman used his weekly radio address to tell America to suck it up and deal with the bailout.
"Many Americans are anxious about their finances and their future," Bush said in his weekly radio address. "I know many of you listening this morning are frustrated with the situation.I got news for you George, we're already there.
"You make sacrifices every day to meet your mortgage payments and keep up with your bills. When the government asks you to pay for mistakes on Wall Street, it does not seem fair. And I understand that.
"And if it were possible to let every irresponsible firm on Wall Street fail without affecting you and your family, I would do it. But that is not possible," Bush said, warning: "The failure of the financial system would mean financial hardship for many of you."
As lawmakers in Congress negotiated details of a final rescue plan amid turmoil on global markets, Bush argued that a collapsed financial sector would mean less credit, fewer new businesses and fewer jobs.
"And that would put our economy on the path toward a deep and painful recession," he argued.
I don't think the bailout is going to help, honestly. We're being told of dire consequences if the bailout doesn't happen. My fear is the bailout happens and we plunge into a recession or depression anyway.
Remember, one month ago the economy was sound. America was fine. The Bush Boom was the most underreported story in America. These guys have been lying to us for years now. They're lying to us now. The bailout is there to give the CEO's and fat cats enough time to get to their lifeboats before the crash.
It's too late for most of us. Far, far too late. What happens if the bailout passes and we still crash?
Dow 8,000 may be generous.