From Paulson's Op-ed in today's FT:
"The European banking sector also remains under pressure in large part due to its exposure to European sovereign credit. A firewall is needed now to stabilise the markets, bring yields down, allow for sovereign refinancings, reduce stress in the banking sector and provide protection against likely future credit events. Acting now would be more effective and cost-efficient than waiting for a crisis that forces such action at a later date."
Acting now would also save the billionaire hedge fund manager's own business. Paulson's bet on a stronger than expected global recovery has proved dead wrong. As of September, his flagship Advantage Plus and Advantage funds were down 47% and 32%. His Recovery Fund was down 31%. HSBC ranked Mr. Paulson’s Advantage Plus fund the fourth-worst-performing hedge fund in its entire universe. And by the way, his performance has only since gotten worse.