I wish Sec. Paulson had written the last word on the Bailout Fiasco yesterday. But he gave the clearest summation of it's failure, for he said it with his own words. Michelle Malkin today called the anemic Sec. Treasury Hank Paulson the "Naked Emperor.". I'd like to say I am shocked that he admits that the bailout will not do what he intended already. But I am honestly not.
Why should he really have been surprised? After all, over 200 economists, from across the political/economic spectrum, told him it would not work.
As Ronald Reagan said, the biggest lie in the English Language is; "I am with the government and I'm here to help." The only near-surprising thing to me is that he claims he "knew" on October 3rd, when the bill was signed that the bailout would not work as intended. I don't know if I'm shocked it took him that long, or shocked he still ramrodded it down our throats when he knew it would be a failure. Seeing as home foreclosures are now 25% more than what they were last year at this time.. One in every 252 homes has received a notice. And Paulson says the funds will not be used to help buy up troubled mortgages. Rather, they will be directed into a myriad of industries, including buying up bank stock, and facilitating that oh-so-needed auto industry "investment."
So basically, the TARP is being pulled over our eyes to nationalize industries at the whim of the man who told us in May 2008; "The worst is likely behind us" with regards to the sub-prime lending crisis. The man who told us that the crisis was "nearly over" on a monthly basis or "largely contained" throughout 2007 while foreclosures were going up and the housing bubble starting to collapse and our currency going with it.
This man prated and preened before the Democratic leaders of Congress, while John Boehner told us; "This is no time for ideological purity," and my Representative, the thankfully outgoing Minority Whip Roy Blount shilled this debacle onto us. It is infuriating that these people sold out our movement, our principles, our party, and sent us into the wilderness for nothing other than their own selfish political interests. It is only moderately gratifying that they were too short-sighted to see that their "pragmatism" crushed them as well. Yes Boehner, get gone.
Oh, and just to top off the disaster, take a look at the top ten "sweeteners" used to ensure that those with any sense on the fiasco here would betray us. And I still want the list of the spineless worms who turned their back on their principles for the pork that was added to the bailout package and switched on our side from the rightly rejected part 1 to the pork-laden debacle we were handed.
The bottom line is, once again, the best solution would've been to let these companies die. Instead, by buying stock in them, we are institutionalizing their failure and ensuring that what Paulson claimed he did not want; "To have to do this again in a generation" is exactly what will happen. Though, given that the S&L crisis hit in the 90s, I think it's much more likely that we are looking at repeating this debacle in under a decade.
Bailouts finance inefficiency. And let's be clear, when we talk about taxpayer money, "financing inefficiency" means "Wasting your money"! Always have, always will. And anyone who says "We need to do something now!" When they are not sure it is the right thing to do, with the better part of a trillion dollars at stake, needs to be put out of their political misery, not allowed to make further decisions. And someone who knows that he is not going to do what he says as he forces us to swallow the poison pill (yes YOU Paulson) is an incompetent, spineless, useless worm.