From The Nation:
Under Paulson’s draft plan, Congress and the courts would have been barred from reviewing or challenging his moves to stabilize financial markets — effectively making him the nation’s economic czar. That’s not just a dangerous power grab for economic and politic reasons. It’s unconstitutional.
So basically, this man is looking for $700 Billion in taxpayer money, to do whatever he thinks is right, without anyone having the ability to review or question his plan and whatever else he does with the money. ARE YOU FREAKIN” NUTS?!? This is just as bad as giving the President the blank check for the Iraq War! They’re looking for another blank check. I hope and pray this proposal does not go through and sensible minds prevail in Congress. Don’t get pushed and bullied into approving this plan.
And yet the folks that caused this mess, the CEOs and managers and those that made the loans, all go away scott free with their golden parachutes. Anybody who knowingly made loans to people who they knew wouldn’t be able to afford them, should be going to jail. Period.
Why were all these people able to do what the did? The answer is Deregulation. If you have some time, here’s a good writeup on the history of this mess.
Great article on how the government is ok with bailing out, providing tax breaks, and subsidies, to large corporations, using YOUR MONEY. But when it comes to you and helping you during hard times, you get nothing, because helping you is deemed too expensive.
Bear Stearns is too important to allow to fail, but millions of homeowners can end up on the street when home prices plummet sharply. The Wall Street holders of overvalued mortgage pools are too important to fail, but homeowners drowning in debt are told to keep paying not matter what.
And Gretchen Morgenson, in the NYTimes, opines on how the Fed bailout of Bear Stearns, “Crosses a Line”.
And as Paul Krugman writes in the NYtimes: