What was the 700 billion Paulson´s program for?

Query by CRFI: What was the 700 billion Paulson´s program for?

Ideal answer:

Answer by Yet another Bolshevik
Right after the Lehman Brothers debacle, the Paulson $ 700 billion program was urgently introduced to purchase “toxic assets» relieves the financial method from their destructive burden. It was lastly voted in Congress with no avoiding a political crisis- and without convincing that the program will be ultimately effective. Even from this sum, $ 250 billion had urgently to be re-directed to re-capitalize and partially nationalize the 9 strongest US banks. The Paulson Plan attacks as the main problem illiquidity although the correct core difficulty is insolvency. Securitization dispersed globally the dangers and made bankruptcy dangers opaque, destroying hence any creditworthiness and freezing the credit lines. Lending by banks was over-extended, sometimes 60 instances more than their assets, creating them now candidates to file for bankruptcy. The Paulson Plan offers some temporary relief to the Wall Street magnates even though the taxpayer ‘Main Street’ has to spend the bill. It transfers one more component of the large private debt to the public debt of an already over-indebted America.

What do you feel? Answer beneath!