Demoskratos

$180 billion of taxpayers’ money later into AIG and regulators are now saying there are huge gaps allowing capital risks to exist and to continue to exist.

Couldn’t Paulson, Bernanke, Cox (former SEC Chairman) and now Geithner have figured that out prior to putting $180 billion into something they clearly do not understand?

I appreciate the historical significance of President Obama, but “this” kind of history is something entirely different.  If President Obama’s administration does not understand then what makes them so adamant about the solutions they are pursuing?

Here’s an excerpt from the White House website:

THE AGENDA • ECONOMY

“…It means preventing the catastrophic failure of financial institutions whose collapse could endanger the entire economy, but only with maximum protections for taxpayers and a clear understanding that government support for any company is an extraordinary action that must come with significant restrictions on the firms that receive support. And it means reforming a weak and outdated regulatory system so that we can better withstand financial shocks and better protect consumers, investors, and businesses from the reckless greed and risk-taking that must never endanger our prosperity again…”

It is my personal opinion that although a lot of money has been given to these financial institutions, it has not come close to achieving the badly needed results.  It is clear that our government leaders do not understand the workings of these financial institutions nor how the badly needed capital flows from the US Treasury and Federal Reserve to Main St and non-financial firms through these financial intermediaries.  It is also clear that taxpayer accountability is still weak and there has been no regulatory reform whatsoever.  It’s nice to tar and feather CEO’s before Congress on CSPAN or Rep. (MA) Barney Frank writing threatening letters regarding corporate retreats and jets, but with $180 billion, I rather that Congress dispense with the theater and get the job done right and fast.

At least it’s cheaper per page and we know the money will go to more people versus just a handful of financial institutions.

And what’s with the page number theatrics again?  Are the Republicans unable to read lengthy documents?  Do Republicans want the 3 page memo from Hank Paulson ?

Further, it’s interesting that when Republicans controlled both the House of Representatives and Senate to pass spending and legislation between 1995 and 2006, no one said a peep about regulation or the national debt which grew from $4.7 trillion to $8.7 trillion.  In addition, during the last 3 Republican White House administrations (Reagan, G HW Bush, G W Bush), the national debt always increased.

When former President GW Bush handed the keys to President Obama, he was also giving him nearly $11 trillion of US National Debt. (Look up Jan 20, 2009 – day of Inauguration)

Now that the Republicans are the minority fighting to keep their jobs, they are suddenly so concerned about spending these days when they themselves are history’s big spenders (see previous link).  The Obama administration is trying to save the economy which based on every statistic is in a major recession with the distinct possibility of going into a depression.  All I hear is Republicans making the same old pitch that didn’t work for years and decades.

Brain washed propaganda or ignorant of facts, blind to the truth and reality?  Either is bad for America.  Time for an attempt to move in another direction.

You remember this:

September 23, 2008

and this.

December 18, 2008

This week, Elizabeth Warren, chairwoman of the Congressional Oversight Panel for the bailout funds, told the Senate Banking Committee that Treasury in 2008 paid $254 billion and received assets worth about $176 billion.

On Monday, we’re going to hear from new US Treasury Secretary Geithner a new plan.  I sure hope it doesn’t involve more money.  God help us.