Flip-flop in progress? Paulson now ‘flexible’ on bailouts

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It appears Treasury Secretary Henry Paulson’s brief tenure as the administration’s chief critic of foreclosure bailouts is coming to a quiet end.

You will remember it was Paulson (pictured) who called bailout plans a ‘nonstarter,’ saying ‘absolutely not’ to talk of direct government aid to homeowners. Well, that was then.

This is now, from Bloomberg News today: ‘Treasury Secretary Henry Paulson indicated the Bush administration is willing to consider congressional plans to stem foreclosures by expanding government guarantees for mortgages. ‘I think you will continue to see flexibility as we learn and go forward,’ Paulson said in an interview with Bloomberg Television in Beijing.’

More: ‘Paulson’s housing comments are a shift from last month, when he said proposals to use government funds were a ‘nonstarter’’ and played down concern about homeowners whose houses are worth less than what they owe on their mortgages.’

Diversion: I knew this little dance reminded me of something, and then it hit me: The very end of one of the greatest scenes in Hollywood history, the Joe Pesci ‘Funny how?’ scene in ‘Goodfellas.’ The part of the scene everybody remembers is when Tommy DeVito (Pesci) browbeats Henry Hill (Ray Liotta), demanding: ‘Funny how??? I’m a clown??? I amuse you??? Funny how???’

DeVito ends the scene by saying: ‘I wonder about you sometimes, Henry. You may fold under pressure!’

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Photo: AFP /Getty Images