Greenspan calls Paulson plan the traditional approach
From a letter today signed by Greenspan, George Shultz and Robert Hall:
As a practical matter, at the current stage of the crisis, the only way that financial institutions can continue to function is for the government to provide financial support. The traditional form of that support calls for the government to buy assets from the institutions, swapping questionable assets for obligations of the government that are universally regarded as sound.
We are deeply concerned about instituting reforms for the longer run that will prevent similar crises in the future. .... But we do not believe that action to deal with the immediate crisis can wait until a comprehensive program for financial stability in the long run is developed and put in place.