Bailout B.S.

The sky is falling, the sky is falling.  I think Sec. Paulson is auditioning for the role of Chicken Little.

Sure, I think the financial markets are in a mess.  And  yes, I think the Feds had to do something to restore confidence in our economy and markets.

But I’m not at all convinced that the plan this administration is jamming down our throats is the best thought out plan, especially when I read stuff like this:

On Friday, Treasury Secretary Henry Paulson gave few details about the structure of the new program. Asked about an overall price tag, he said, “hundreds of billions” of dollars.

Congressional leaders said they were ready to move quickly but still needed details.

For instance, there was no indication of what the government would get in return from financial companies for the federal assistance.

Paulson and Federal Reserve Chairman Ben Bernanke briefed lawmakers in both parties on the idea by conference call Friday.

In a session with House Democrats, they described a plan in which the government would, in essence, set up reverse auctions, putting up money for a class of distressed assets – such as loans that are delinquent but not in default – and financial institutions would compete for how little they would accept for the investments, said Rep. Brad Sherman, D-Calif., who participated in the call.

Paulson rejected Democrats’ calls to include tighter regulations, corporate reforms or limits on executive compensation as part of the measure, Sherman said.

“He’s doing his best to paint a picture of the sky falling, and then he says, because the sky’s falling, you have to do it my way.”

You gotta love the part about Paulson not providing any details or what exactly we, the taxpayers, would be getting for our billions and billions of dollars.  Will the Democrats roll over once again and accept this plan lock, stock, and barrel?  No provision for tighter regulations, corporate reforms or limits on executive compensation?

Oh yeah, I forgot, the sky is falling and we’re all going to die if we don’t sign this thing, and sign it NOW.  And don’t forget the definition of “hundreds of billions” could mean 200 billion or 900 hundred billion or more.  What a deal.

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2 Responses to “Bailout B.S.”

  1. I don’t claim to understand it all, but what the hell?!!!
    Don’t you get this tremendously awful feeling we are being hoodwinked? (Again!)

    Who got us into this mess?
    Who’s paying? (well, that one I can answer)
    Who gets the money?
    How do we ensure it is spent correctly?
    How do we get our money back?
    Who’s head will/should roll?

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