The Crone barfs!
Say what? $700 billion, right now, please. What's the hurry? The "market" has to run to the John? It took a few years for the financial investment banks to come up with the schemes that got us into this mess. Let them wait while the government comes up with a reasonable, not a hurried plan. Secretary Paulson keeps saying we must hurry. The banks need liquidity so the average consumer and small business person can get loans. Yeah, right.
The assumption is the government will take over these debts, which they admit are so complex they need multiple experts to try to evaluate them. The same experts who helped get us here?
In private industry when a company loans another money, it usually gets good rates and/or equity in the firm. Why should the US Government (taxpayer) not be treated the same?
I listened to part of today's Hearing and am disturbed by some things I heard.
(1) Credit Card and student load default debt coverage? Absolutely not! Banks and others have encouraged credit card debt. Both the consumer who lacks fiscal responsibility and the banks that inundate us with credit card offers are responsible. Let them pay thee price. (I am not as hard on student loan debt. However, let's stick to the main problem.) We do need some moral leadership to reduce personal debt. (Encouraging spend, spend, spend to boost the economy has its price.)
(2)The taxpayer will not abide golden parachute exits from bailed out companies. Not that these folks have not already gotten huge profits from these illiquid schemes (AIG's Fuld, $490 million in stock options and bonuses). Let them walk away with full pockets and the taxpayer will be throwing virtual teabags in the harbor.
(3) No possibility of future review of the Treasury Secretary's actions in this matter by a court of law or review is not acceptable. There should be some liability, even if limited.
(4) What's the doggone rush? This situation has been coming on for some time and now all of a sudden the "market" has lost faith? The "market" is what brought this on! (As well as consumer's lack of knowledge about the equity and mortgages.) Take the time to get it right. My IRA, pension, etc has already lost value. And so it goes.
(5) No to $700 billion! Absolutely not. Where does this figure come from? Is it every asset class that is in default? Infusing some money into the banking system , not taking over the entire consumer debt problem, should be the goal. Secretary Paulson says we need to get liquidity back into the "market". How about a 100 or 200 billion infusion? (I get sick just thinking about it.)
I am not real savvy on credit-debt swaps or the other esoteric financial instruments. I am just someone who has no debt. Why? Because debt is damn scary. Too bad that is not the case for the US Government or the "market"!
Absolutely disgusted. Arrrrgh!