July 31, 2008 (LPAC)--Washington intelligence sources reported to EIR that Treasury Secretary Henry Paulson was demanding that Congress pass legislation that would have no limit on the debt that the United States could incur in the Fannie/Freddie bail-out bill that was just passed and signed by George Bush. But, this insane demand was rejected as un-Constitutional by senior members of Congress, who are not about to give up the Congressional duty of oversight. EIR's source said that this "no limit" demand was made because Paulson knows full well that the cost of a bail-out of Fannie and Freddei alone could be over $1 trillion in the immediate period, with the already-known bad mortgages topping $1.3 trillion. Broader losses would be as high as $8 trillion, the source said, when the anticipated bank failures are added in.
Any such proposals, Lyndon LaRouche reiterated yesterday, are tantamount to high treason. There is no way to cover these losses with a bail-out. The only solutions are the three steps that LaRouche laid out at his July 22 webcast.
BACKGROUND:
July 30, 2008 - Mr. Paulson's Consensual Folly
July 24, 2008 - Biggest Bail-Out In History Passes The House
RELATED CONTENT:
July 26, 2008 - LPACTV - The LaRouche Show: Why All The Banks Are Collapsing
