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Commentary: Bailout switch has some up in arms

  • Story Highlights
  • Brown: Treasury's new plan for $700 billion could be seen as flip-flop
  • She says Congress voted for mortgage aid, but now funds will go to bank stocks
  • Treasury Secretary Henry Paulson defends the switch in spending
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By Campbell Brown
CNN
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Editor's note: Campbell Brown anchors CNN's "Campbell Brown: No Bias, No Bull" at 8 p.m. ET Mondays through Fridays. She delivered this commentary during the "Cutting through the Bull" segment of Wednesday night's broadcast.

CNN's Campbell Brown says Congress OK'd a mortgage asset bailout.

CNN's Campbell Brown says Congress OK'd a mortgage asset bailout.

(CNN) -- On Wednesday, there was a big change to the government bailout plan and already a lot of people are screaming foul.

Treasury Secretary Henry Paulson told us he now has a different plan for how to spend that $700 billion of your money.

When Congress OK'd the bailout package, they all told us it would be spent buying troubled mortgage assets.

That's what Congress voted on. That's what Congress approved.

Now, Paulson says it would be better for the economy if he uses the money to buy bank stocks as a way to help their balance sheets so they are more likely to lend you money for a car or student loan or credit card. iReport.com: Are you facing foreclosure?

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Some today are accusing Paulson of being a flip-flopper.

Here's more of how he explained the big change:

Secretary Paulson: "What we said to Congress was we needed a financial rescue package because the credit markets were stopped up.

"And we were focused on the problem. And when we went to Congress, the liquid assets looked like the way to go.

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"As the situation worsened, the facts changed.... And I will never apologize for changing an approach or strategy when the facts change.

The opinions expressed in this commentary are solely those of Campbell Brown.

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