Paulson Bank Rescue Proposal Is `Crazy,' O'Neill Says (Update1)

[Subdivisions]

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=atJMmClVjevU

Oct. 1 (Bloomberg) -- Former U.S. Treasury Secretary Paul O'Neill said the $700 billion bank-rescue proposal under negotiation in Washington is ``crazy,'' with potentially ``awful'' consequences for the world's largest economy.

``Doesn't this seem like lunacy to you?'' said O'Neill, who was President George W. Bush's first Treasury chief, from 2001 to 2002, in a telephone interview today. ``The consequences of it are unbelievably bad in terms of public intrusion into the private sector.''

O'Neill's objections mirror those of Republicans in the House of Representatives who rejected the plan in a Sept. 29 vote. The former Treasury chief said he's lobbying for an alternative solution that would offer guarantees for troubled assets, stopping short of purchasing the debt.

``Is anybody thinking there?'' asked O'Neill, who also served as deputy budget director in the Ford administration. ``It's too late, it's not going to make any difference and it's aggravating as hell when there's a better idea and you can't even get it in play,'' he said, recognizing little success so far in pitching his own proposal.

O'Neill, 72, was fired after an almost two-year tenure marked by strains with White House officials and comments that roiled markets.

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FWIW.

[sandnsea]

1. Because he opposes government intrusion, ideology,

Not because he cares about what happens to people.

[GetTheRightVote]

2. O'Neill was outed by Bush due to not being loyal to him, he is a good guy

The congress should listen to his ideals before jumping into the mess these same people have had of our finicial situation. I have often wonder if this has been done on purpose, it is October, and many repubs do not like McCain, hmmm. All I know is that it is not making logical sense to me and when I feel this way it usually ends up being one big lie similiar to the Iraq War lie.

:grr:

[SalmonChantedEvening]

3. One hour and 37 minutes from now...

Inhannity will use the words 'unhinged' and 'O'Neill' in the same sentence.

Sim Sala Bim.