The Architects of the $700 Billion Bailout are Clueless
Henry Paulson has announced that the government will not be purchasing troubled assets from banks, as was originally proposed. Rather, the government expects to expand the program to debt related to auto loans and student loans. This follows a committment to invest $250 billion dollars in the stock of financial companies in the hope that it will improve their balance sheets and encourage lending, and an additional $40 billion to American International Group. This is AIG's second handout from the tax payers.
Paulson has said it will take weeks to design a plan to get money into the credit markets that support auto and student loan credit, which strikes me as odd. In early October, we heard that getting the package approved was needed and it was treated as an emergency. At the time, many of those involved said it needed to be done in days. Here we are a month later, with the original plan to buy bad debt out the window, a new plan to purchase company stock, another plan to prop up auto and student loan markets, and yet more money for AIG. As for this emergency, the way Henry Paulson is talking, the plan won't even be designed until the beginning of December at the earliest. For those of you keeping track, that will be more than two months after this "emergency" bailout was proposed.
I was suspicious of the bailout from the beginning. There didn't seem to be a definitive plan, the amount seemed to be pulled out of thin air, and they appeared to be in a hurry to ram it through Congress. Now, Congress is discussing another bailout for the auto industry. Paulson said funds from the $700 billion bailout won't be used for the auto industry. That particular sector will be addressed by yet another stimulus measure. This leaves me asking one question: Which sector is next? First the financial sector digs a hole for itself, and now the auto industry is following suit. Who will be the next company that needs the government to save it from itself?
In my opinion, the biggest cheerleaders of the bailout were George W. Bush, Henry Paulson, Nancy Pelosi, and Barney Frank. Their bipartisan cooperation is causing the deficit to skyrocket and is expanding the government by having it take ownership stakes in privately owned companies. The bailout is bad on many levels. I'm just waiting to find out how much waste and misuse ocurred once all is said and done.
http://news.yahoo.com/s/ap/financial_meltdown
Paulson has said it will take weeks to design a plan to get money into the credit markets that support auto and student loan credit, which strikes me as odd. In early October, we heard that getting the package approved was needed and it was treated as an emergency. At the time, many of those involved said it needed to be done in days. Here we are a month later, with the original plan to buy bad debt out the window, a new plan to purchase company stock, another plan to prop up auto and student loan markets, and yet more money for AIG. As for this emergency, the way Henry Paulson is talking, the plan won't even be designed until the beginning of December at the earliest. For those of you keeping track, that will be more than two months after this "emergency" bailout was proposed.
I was suspicious of the bailout from the beginning. There didn't seem to be a definitive plan, the amount seemed to be pulled out of thin air, and they appeared to be in a hurry to ram it through Congress. Now, Congress is discussing another bailout for the auto industry. Paulson said funds from the $700 billion bailout won't be used for the auto industry. That particular sector will be addressed by yet another stimulus measure. This leaves me asking one question: Which sector is next? First the financial sector digs a hole for itself, and now the auto industry is following suit. Who will be the next company that needs the government to save it from itself?
In my opinion, the biggest cheerleaders of the bailout were George W. Bush, Henry Paulson, Nancy Pelosi, and Barney Frank. Their bipartisan cooperation is causing the deficit to skyrocket and is expanding the government by having it take ownership stakes in privately owned companies. The bailout is bad on many levels. I'm just waiting to find out how much waste and misuse ocurred once all is said and done.
http://news.yahoo.com/s/ap/financial_meltdown
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