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Paulson Setting Up Massive Corporate Welfare

At first glance that's how this sounds to me.

Treasury Secretary Henry Paulson is working on a plan that would set up a government facility to take on bad debts from financial institutions, preventing a worsening of the global credit crisis, Wall Street sources have told CNBC.

The facility would be similar to the Resolution Trust Corporation, which was set up in 1989 to take on all the failed thrift assets during the savings and loan crisis, these sources said.

Paulson is said to be shopping the proposal to lawmakers in Congress, a congressional aide told Reuters.

Such a move, according to its advocates, would allow banks to shovel bad debt off their balance sheets and send them back to business as usual.

It is mighty interesting that conservatives think individuals who aren't in the same economic class as the McCains just need to suck it up, but Wall Street types who mismanage their businesses need a giant taxpayer funded safety net.