Jimmy Carter says bailout plan is faulty

ATLANTA (AP) -- The Bush administration's $700 billion plan to bail out the financial industry is "extremely faulty," Former President Jimmy Carter said at a Tuesday night town hall-style meeting.

Carter said he believes action is necessary but is skeptical of Treasury Secretary Henry Paulson's current plan.

"It's only three pages of outline. It gives him dictatorial power with no supervision," Carter said.

Carter told the audience the $700 billion bailout figure amounts to "$10,000 for every family in America."

"I believe that the proposal put forth by Mr. Paulson is extremely faulty," Carter said.

Before a sold-out crowd of enthusiastic supporters and guests, Carter and wife Rosalynn Carter outlined Carter Center initiatives and answered questions at their annual town hall meeting.

Kicking off their "Conversations at The Carter Center" program series, the Carters also talked about the presidential campaign and problems associated with emerging democracies.

So far this year, a dozen federally insured banks and thrifts have failed, compared with three last year. The country's largest thrift, Washington Mutual Inc., is faltering.

The U.S. has taken extraordinary measures in recent weeks to prevent a financial calamity, which would have devastating implications for the broader economy. It has, among other things, taken control of mortgage giants Fannie Mae and Freddie Mac, provided an $85 billion emergency loan to insurance colossus American International Group Inc. and temporarily banned short selling of hundreds of financial stocks.