The $700 Billion Bailout Bait and Switch

~~By American Lassie

In an earlier post, on November 4, 2008 before the Presidential race was called, I expressed a worry about where the $700 billion bail-out money was going. It didn’t seem to be going where we were told it was intended to go.

Now Republican Senator Jim Inhofe of Oklahoma is addressing this in same manner.  On Saturday, November 15, he said we should take back the remaining money given to Henry Paulson in that “blank check.”

First we were told it was to buy mortgage-backed securities.  Then Paulson shifted gears and said it was to use $250 billion to buy stakes in banks.  The “Troubled Asset Relief Program” (TARP) would enable ailing banks to start lending money again and thus boost the economy.

-No homeowner has yet been helped and foreclosures are multiplying.
-Senator Chris Dodd said Paulson’s actions are “beyond belief.”
-Paulson told Charlie Rose  – “The driver is to have healthy banks be well capitalized so they can play for our country right now.”
-Paulson diverted $250 billion to buy stakes in healthy banks to spur lending, but they are not doing this with the money.
-Charles Schumer, Democrat-NY, fears the banks might stuff the money “under the proverbial mattress”.  It appears this is exactly what they are doing.
-Treasury hired the Bank of New York Mellon Corp. as “custodian” of the TARP program.  They also picked Mellon to receive a $3 Billion investment as part of the Capital Infusion Program.

Heads should roll !!!  Greed, corruption, and incompetence – where does it end?
Martha Stewart was imprisoned for lying – but then, she is a woman. Administrators’ neglect brought on this crisis.  It has been coming on for some time.  There were ample warnings (Bush and McCain) but Congress did nothing.  Barney Frank, chairman of the House Financial Services Committee, is one of the prime culprits.  When warned about Fannie Mae he said there was no problem there.  At the time his live-in partner, Herb Moss, was an administrator at Fannie Mae.  Conflict of interest?  I’d say so, but to paraphrase Katie Couric, “Who am I to judge anyone?”

Now everybody wants a bail-out.  The auto industry appears to be next on the list and Governor Schwarzenegger of California thinks that his state should be bailed out because California has shown discipline. (This has nothing to do with the fire – this is another matter).  Give me a break – when has California shown any discipline?  And why should that entitle them to bail-out money from us tax payers in the rest of the country?  What’s next?  The health industry, the remaining 49 states?  (Except for Alaska which seems to be doing fine, thanks to a smart governor).  Next we will have government-owned 7-11 stores.

I’m with Jim Inhofe.  Let’s demand our money back. It’s our money and we didn’t agree to this giveaway.  In my opinions, bankers can’t be trusted.  Remember Mr. Potter in “It’s a Wonderful Life”?  Greedy, crooked, conniving piece of scum…

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Check out BailoutSleuth.com to keep up with the bailout developments and who’s getting what…