[updated below (w/transcript) - Update II]

University of Notre Dame Professor of Finance Richard Sheehan has been one of the most incisive economist-critics of the Paulson plan since it was unveiled, and he's my guest today on Salon Radio. We discuss the ways in which the key fear-mongering claims of Paulson have been both misleading and exaggerated; the reasons the bailout plan won't work even if the best case scenario occurs; where and how the Federal Government will get $700 billion to fund it; and the role Paulson himself has played in the events that have caused this crisis. From Professor Sheehan in the interview:

Unfortunately, Mr. Paulson was among those that were creating the problem, rather than warning about the problem. In his role as CEO of Goldman Sachs, Goldman -- under his watch -- created a whole lot of CDOs [collateralized debt obligations] that now are under the heading of "toxic waste." So it's amusing in a twisted way to look at him now as the one who is going to save us from imminent financial collapse, when it was at least in part brought on by the actions of Goldman, in terms of being so liberal in their willingness to create new and improved CDOs.

The interview can be heard by clicking PLAY on the recorder below. It is roughly 20 minutes and a transcript is here.

Tomorrow on Salon Radio: Digby, to discuss this important post about the severe political risks for the Democrats generally, and the Obama campaign specifically, from having the Democratic Congress voting for a bailout plan.

UPDATE: On an unrelated note, Bob Woodward is currently at FireDogLake answering questions about his new book. I asked him this question about the claim Woodward made last week that the U.S. has achieved a new technological "breakthrough" allowing it to use a super-innovative and advanced weapon in Iraq (which Woodward says he knows about but refuses to describe), and Woodward's reply to my question is here (and my further reply/question is here). Woodward will be at FDL for the next hour (until 4:00 p.m. EST) answering questions in the comment section.

UPDATE II: Without commenting on all of her recommended policies, this is really good, effective and strong political messaging from Rep. Marcy Kaptur (D-Ohio):

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Interview with Professor Sheehan here: