Spring Break
Washington continues bungling bailout efforts
Ian Bezek
Issue date: 11/18/08 Section: Opinion
While we eagerly wait for the inauguration of our new president, the foul odor of the Bush administration continues to waft over our downtrodden economy. Only a month after the passage of the much-hyped bailout, it's already proven to be completely flawed.
Less then two months ago, Secretary of the Treasury Henry Paulson ran breathlessly to Congress demanding $700 billion to supposedly save the financial system. We were told the money was needed immediately or unspeakable doom would befall us.
Of course, as I wrote back then, Paulson was flat out lying; Congress initially voted down the bill and yet there was no crash of the financial system.
Paulson claimed that our ATMs would quit working if the bailout didn't immediately pass -- it was blackmail at its finest.
Now, barely a month after the passage of the bailout, we find out that Paulson himself knows his plan was totally misguided. The $700 billion was supposed to be used to buy up bad mortgage debt.
We were told this was such as good idea that the government would even make a profit from purchasing the loans.
Now, Paulson tells us this plan is totally unfeasible and is being scrapped.
We were told what the money would be used for, but Paulson lied. Where's the money now? A lot of it has been used to buy up chunks of major American banks -- not at all what Congress had voted for.
A motley assortment of desperate souls is now begging for the rest of the money -- the cities of San Diego and Atlanta want bailouts and so do American automakers.
Most brazenly of all, several insurance companies including Hartford and Genworth have turned themselves into banks so that they can collect from the bailout as well. Hartford has been an insurance company for decades, yet now they suddenly declare themselves to be a bank and demand a handout.
Needless to say, the $700 billion is being completely wasted. While the original plan was destined for failure, it at least had a purpose and a desired outcome.
Less then two months ago, Secretary of the Treasury Henry Paulson ran breathlessly to Congress demanding $700 billion to supposedly save the financial system. We were told the money was needed immediately or unspeakable doom would befall us.
Of course, as I wrote back then, Paulson was flat out lying; Congress initially voted down the bill and yet there was no crash of the financial system.
Paulson claimed that our ATMs would quit working if the bailout didn't immediately pass -- it was blackmail at its finest.
Now, barely a month after the passage of the bailout, we find out that Paulson himself knows his plan was totally misguided. The $700 billion was supposed to be used to buy up bad mortgage debt.
We were told this was such as good idea that the government would even make a profit from purchasing the loans.
Now, Paulson tells us this plan is totally unfeasible and is being scrapped.
We were told what the money would be used for, but Paulson lied. Where's the money now? A lot of it has been used to buy up chunks of major American banks -- not at all what Congress had voted for.
A motley assortment of desperate souls is now begging for the rest of the money -- the cities of San Diego and Atlanta want bailouts and so do American automakers.
Most brazenly of all, several insurance companies including Hartford and Genworth have turned themselves into banks so that they can collect from the bailout as well. Hartford has been an insurance company for decades, yet now they suddenly declare themselves to be a bank and demand a handout.
Needless to say, the $700 billion is being completely wasted. While the original plan was destined for failure, it at least had a purpose and a desired outcome.
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