Ah yes, the President himself rides in on his white stallion to save the poor sub-prime defaulters. And my, what cynical responses from pragmatic bloggers:
*Ritholtz says Politics as Usual
* Mish parses the real thought process behind the initiative
*The Fundamental Analysist is wondering why Bush is asking Paulson to look into the sub-prime mess when Paulson doesn't even think there is a problem.
* The irony is not lost on Financial Armageddon either.
Normally accusations of cynicism have a pejorative connotation associated with them, however in this case, the cynicism is entirely justified. Antisthenes, the founder of cynicism, would be well proud.
On the other hand, the goofy permabulls have an entirely different view.
*The Fly says Fuck you, we're going higher.
In the short term, they are probably right.