Paulson Picking A Bottom

Warren Buffet said "be fearful when others are greedy and greedy when others are fearful". It looks like Paulson's getting in on Fannie and Freddie by calling a bottom with a plan to buy stock in the two GSEs. If you believe Warren, maybe this will prove to be the best long term investment around. On the other hand, many foreign sovereign wealth funds played similarly in other banks - Citi, Etrade, etc...in the long term they may be vindicated, but they certainly missed the bottom short term.

Ok, switch gears from the speculation and possible later vindication of such a move - much like the Resolution Trust Corp did in the savings and loan crisis of the early 90's to those who worry "we're putting taxpayers money at risk". Excuse me - I consider a large portion of my tax bill to be "thrown away" each year through wasteful pork barrel spending, farm subsidies, a war in Iraq, etc...if Paulson says he wants to invest in the U.S. Housing market which is really an investment in the economy long term - I'll be happy to consider this just another piece "thrown away" except maybe, just maybe we'll see some sort of return that Congress won't be able to get its hooks into immediately.