David Schussler
Invoking a “Rip Van Winkle” metaphor, this morning US Treasury Secretary Paulson admitted the failures of our financial systems and its oversight. Haltingly on Fox News Sunday, he could not answer moderator Chris Wallace’s simple questions regarding the safety of the average persons finances today and tomorrow.
The huge trillion dollar bailout proposed by the feds and expected to be voted on this week does not protect us against the CEO’s of large financial institutions manipulating the government bailout funds (our money) to personal advantage.
According to Paulson there are no provisions for preventing excess profit taking, bonuses, etc. for managers with the use of this new money which will contribute to our national debt, which will in turn affect our pockets for some time to come.
The American people are facing a financial panic and Secretary Paulson is expecting them to trust him to make the right decisions
at this time to save the economy. This new trillion dollar debt could easily fall on the backs of the American taxpayer.
Often Secretary Paulson speaks of federal protection of savings and money market funds 100,000 dollars or less which certainly covers most Americans but the (trickle down) fallout of losses above that amount affects all of us.
Most of us are experiencing financial difficulties now as we watch the news media, congress, and government officials all speak on our behalf regarding the current financial crisis. Many of us do not have 401K plans, money market accounts, or even savings because of the current economic situation which has been coming on for some time now. Poor individual judgment with our foray into the “easy credit” markets softened by congress in the 90’s have put our nation into a weak mode with ARMs and other exploding “buy now and pay later” loan situations that have put the nations economy at huge risk.
“Trust” is the key word. We are asked to put our money into the hands of people that we can trust, and we do. The money cache is often even called a trust of some kind. These people that we have been trusting have somehow betrayed us and the main one is Secretary Paulson. It is unreasonable to believe that our Treasury Secretary has not been aware of the problems with our economy and the building explosive nature of todays crisis. It is unreasonable to believe that those who run our banking institutions and oversight have been so unaware as to not forsee the obvious. Greed, profiteering, and political gain have led us in to the problems we are encountering today and the same people who led us there are still there.
Can we “trust” the same folks who led us there to lead us out? Same treasury secretary, same oversight in congress, same CEOs of banking and loan institutions? Think not! We need a financial leader who is not asleep, with new innovative ideas, with a desire to keep our institutions honest, and with the ability to infuse the American people with hope for our future. Definately not one “asleep at the wheel”.
4 users commented in " Treasury Secretary Paulson Still Asleep at the Wheel "
Follow-up comment rss or Leave a TrackbackGreat work. I really think you are spot on. I would also recommend everyone taking a look at this weeks Bill Moyer’s Journal. http://www.pbs.org/moyers/journal/09192008/profile.html It was really good this week, and help explain the situation a lot. You can read the transcript or watch it streaming.
Capitalism, so-called “free market” is a failure.
Rich
You got a better idea?
Are you serious? You completely ignore the fact that the $$ would be used to buy undervalued assets, not just spent without a return. Interest will be made on them as well as potential gains on the principal as well. If the banks that sell them do better afterwards, GOOD. THAT IS THE POINT OF THIS. This plan doesn’t really help banks that have not been aggressive with mark downs or that are truely poorly capitalized. It helps banks that have been aggressive, have the cash to survive and are suffering because of uncertainty. The banks that do the best after this deal will do so because they should have been doing well all along.
You want to punish wallstreet? How about a bankruptcy (LEH) how about wiping out equity (BSC) how about cutting down franchises and forcing them to lose their hold on the market by forcing a downside and break up of their business (AIG, and FRE/FMN eventually), nevermind the $$ lost on WM, WB, ML, etc. Plenty of CEOs or other top execs have been cut that had a hand in this.
This is not a Wall Street bail out, it’s not screwing over the taxpayers, and based on thinking like yours, the govt has a serious chance of screwing this up.
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