Reply #2: Watch for Mr. Kashkari [View All]

[susu369]

http://online.wsj.com/public/article_print/SB120968951793761429.html

Leading the Treasury Department's efforts Friday are Neel Kashkari, a senior adviser to Treasury Secretary Henry Paulson, and Phillip Swagel, assistant secretary for economic policy.

Like Mr. Paulson, Mr. Kashkari left Goldman Sachs Group Inc. to join the Treasury Department. In a presentation he has given to several groups, Mr. Kashkari tries to play down some of the recent economic news and put the Treasury Department's response in a more flattering context.

According to a copy of the presentation, Mr. Kashkari notes that just four million homeowners are behind on their mortgages, a number equal to about 8% of the 55 million homeowners with loans. "This compares to 50% seriously delinquent in the 1930s," the spreadsheet reads.

-snip-

Mr. Kashkari's presentation takes a more aggressive stand against a broad bailout than the Treasury Department's usual public posture. "Homeowners who can afford their mortgage but walk because they are underwater are merely speculators," Mr. Kashkari's slideshow reads. "It's not the government's job to make people whole for their investment losses."