Henry Paulson

Minnesota home prices have declined by as much as 20 percent. More than 27,000 will have their homes foreclosed on in the next year. Twenty-five percent of ARMS in the state have yet to adjust. And thousands of more homeowners are struggling with negative equity in their homes as the housing market continues to be hit with serious aftershocks.

So how will homeowners caught up in the crisis fare under the Bush Administration’s Wall Street bailout? U of M law professor and former assistant attorney general Prentiss Cox says the bailout is “like a reverse criminal action where you give restitution to the criminals and put the victims in jail.” He talks to MnIndy about how we got here and why the bailout needs to change.

As if $700 billion weren’t an incomprehensible enough sum on its own, that widely repeated figure only represents Henry Paulson’s personal stash of get out of debt free cards. The total tab on the array of taxpayer-financed Wall Street bailouts presently contemplated is likely to be closer to $1.8 trillion by the reckoning of CNBC, whose highly recommended estimate includes a rundown of the additional bailout billions.

The following list of things you can buy with a trillion dollars is cadged from the invaluable Undernews. For starters, a trillion dollars is enough money to:

Buy everybody living in Los Angeles at least one Lamborghini Gallardo (pictured above; base couple starts at $186,900).

The list continues…

After Monday’s dramatic tumble in the financial markets–led by dire announcements about Lehman Brothers (bound for bankruptcy court), Merrill Lynch (absorbed by Bank of America) and insurance giant AIG (desperately seeking bridge loans)–I got in touch with Doug Henwood for some help in sorting out these latest developments and what they augur for the US economy on Main Street.

In a 20-minute interview taped Tuesday afternoon, Henwood–the publisher of the invaluable Left Business Observer newsletter and perhaps our most plainspoken economics journalist–took the measure of “Gray Monday” and the arc of the US economy.