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November 18, 2008

Paulson bailout thinking started in January

That’s among the gems buried in the middle of a five –page story on Paulson’s bailout zigs and zags.

In Juanuary, he was talking with Federal Reserve Chairman Ben Bernanke about some sort of bailout. By March, as Bear Stearns nearly got in trouble before its eventual demise, he was getting Treasury staff to start putting stuff on paper.

I appreciate that Paulson is reportedly not a free-markets ideologue.

Nonetheless, if we was ramping things up this early, what took him so long to put stuff into action? Sounds like some degree of negligence to me.

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