The New Child of Treasury

Here is the best access I have found to the Bailout details. The Treasury Secretary is granted the Right to blow $250 billion as quickly as he can, then get another $100 billion granted to him by the President, with another $350 billion in the Winds of Congress; if they like the Payoffs made through the first $350 billion. There has been mention of saving Homeowners, yet more attention is paid in the bill to inciting new bad Mortgages with a $7500 tax credit for subscription of new Mortgages between April 2008-July2009; few likely to express regret for Those already with a Mortgage at this Point. Paulson seems bound to help current Mortgage-Holders, though he has been given little Instruction of how, or even when, he is to do so; I think, according to the language, he could even demand higher Interest rates on the Mortgages. The Rumor, unchecked, that any Profits derived for the Treasury is supposed to be a hidden tax on Home-owning, with all Profits going to pay down the National Debt. It is obvious that Paulson is looking for a good Job in the finance industry, once his Treasury Days are over!

I see nowhere any Time Limit on the operation of this bill. I might be wrong on this, but imagine that the Treasury can buy bad debt for Generations, without need for further legislative authorship; at least, I have not heard of any Sunset provision in the Act to come. The Oversight Board has had little Public discussion, and no one has voiced any restraints on Treasury action I can find. The new special Inspector General sounds like it will be a lush new Government Job, with a GS-15 Payscale, and $50 million to spend. The Oversight Committee is paid well. Paulson can do whatever he wants for the first 45 Days, then he must declare the Procedures he will be using. We know that the Civil Servants will fare well, even if the rest of the Country goes broke.

It would be nice Sometime to study a document before a group of untrustworthy Individuals set it as law above Us. I do know that there is nothing in this thing which would compel any Change in Lending practice, and provides Incentives to new Homeowners to over-finance their Homes, or to refinance existing Housing, all under the same old lack of Regulation which brought Us to this Point. The Treasury Secretary will undoubtedly be buying Bad Debt for a long time. We can only hope that the conservative Republicans will hold to their Convictions. lgl