How did they decide on $700B?

How did the Treasury Department arrive at a figure of $700 billion for the bailout? Surely it was based on careful analysis and a detailed methodology.

Nope. They guessed. They just pulled a number out of thin air. They made it up.

In fact, some of the most basic details, including the $700 billion figure Treasury would use to buy up bad debt, are fuzzy.

“It’s not based on any particular data point,” a Treasury spokeswoman told Forbes.com Tuesday. “We just wanted to choose a really large number.”

This just gives me a fuzzy feeling about politicians in Washington. Perhaps somebody should peel them like a kiwi.

Read the Forbes article – Bad News For The Bailout and take a look at the LA Times also.

Michele Malkin has a series on the subprime lending crisis you should look at.

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