Power Grab

Ulli Uncategorized 11 Comments

The markets whipsawed Tuesday and ended sharply lower because of the bailout package not racing through congress as many had hoped for. Good thing, because some of the provisions are questionable and downright alarming.

Can you spell power hungry? Then read what now have become the most feared 32 words of the bailout proposal submitted by Treasury Secretary Paulson:

“Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.”

This may be one of the reasons comrade Paulson wants to shove this package down everyone’s throat before there is a realization of what that absolute power really means. To give any appointed individual the power to do what he pleases with $700 billion seems simply outrageous to me.

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Comments 11

  1. Paulson has stated he won’t continue as Treasury Secretary with the new adminstration i.e. regardless of whomever is elected. Not only would I be concerned that he would have that much “power” but who will be his successor i.e. the new “GOD of Finance”?

  2. Absolute power = Corruption-absolutely

    This human equation has followed every
    civilization since the beginning of time. The Republicans need the market to be in a positive direction the first week of November and they will do anything with this money to make it happen.

  3. This is bull of the highest order. I don’t care if you’re Republican or Democrat, conservative or liberal — you cannot agree with this unconscionable, unparalleled request for unfettered power. No THINKING person can agree with it. I can only hope that Congress will see it for what it is, and Paulson and Bernanke should be ashamed of themselves for requesting it.

  4. Ulli,
    No one seemed to complain much when the easy credit standards and rapidly appreciating real estate markets were in full swing. No one complains when things are on the “upside”.

    But the pendulum swings…

    And now, we’re supposed to let a single individual control the solution to a problem that won’t go away…even with massive infusions of “non-existant” cash (i.e further taxpayer debt).

    It seems we’re just further postponing an inevitable crash, and actually “cashing out” the investment banks, insurance companies, and lenders who are the ones at the top of the “risk pile”. They bought up all these toxic loans as “solid investmtents”.

    No one wants “a downaide” here, not even me…but let’s not delay this into a 10 year cycle of what seems like massive inflation coming from all this infusion of currently non-existing cash.

    Am I the one confused here?

    Paul

  5. I just e-mailed (and called) my senator about this and asked him to step in. I hope every other blog reader who cares about the future of our nation is doing the same thing. If this bailout goes forward without amendment, you can blame your inaction.

    DO something instead of complaining to the wall.

    Bill

  6. I found this at another blog [fund my mutual fund] and it encapsulated my gut reaction about the entire bailout:

    “It is interesting to hear the cries of anguish when what has been happening in Ohio, Indiana, and Michigan for the past half decade finally hits Wall Street. Now all the sudden – job losses are a national emergency and every resource in America must be brought to bear to solve their pain (because their pain is all our pain) – when it’s Midwest manufacturing jobs on the other hand… well it’s just “free markets doing their thing”. :)”

  7. The underlying problem is caused by the mortgage bond tranches, which cannot be valued and therefore cannot be sold. This bad bonds are freezing the capital in the financial system. After all is said and done with the bailout, that issue still remains and the situation could repeat itself.

    The real solution would be to determine what these tainted mortgage bonds are worth and how to split them up so they can be liquidated. You don’t need a government bailout to do that.

  8. If the American people are concerned about giving the U.S. Treasury Department emergency spending authority, they should be terrified at the thought of leaving the solution to this crisis in the hands of a disfunctional Congress.

  9. Ask yurself 3 questions:

    1. If the credit/liquidity crisis looming the past 2 yrs where was the treasury & the FED heads with game plans for a disaster scenario so tht congress cud review & have it in place shud it be required. Any other company wud fire these 2 guys in a heartbeat.
    2. If Fanny/Freddie had approx half the mortgage loans/toxic assets how come only 200 billion takes care of it and 700 is required for the boys on Wall St.
    3. Why wasnt it a crisis until GS stk started to plummet. Hank needs to find a soft landing in January when he is looking for a gig. Yeah wonder what his blind trust looks like

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