Wednesday, September 24, 2008


Christopher Dodd has asked some good questions of Paulsen and Bernanke:

I have a few more,

~The government does not have 700 billion in cash available, considering the national debit and it's enormous increase the last 8 years. This money will have to be borrowed. Who will the government borrow this money from?

~How much will the interest expense be on the 700 billion borrowed to service the bailout loan?

~How much of that 700 billion bailout will be spent on executives parachute payments? (as in, the contracted amount due to an exiting executive. These days parachutes are paid regardless of an executives actual performance in a company. Ethical or not)

~Paulsen and Bernanke claim that congress must approve this bailout to avoid an economic disaster. What do they call this situation we're now in?

~Will this bailout cover the bad mortgages written by foreign banks, central and private? Would those bad debt bailouts on foreign banks include bad mortgages made in other countries?

~Henry Paulsen is Secretary of Treasury. Bernanke is the new head of the Fed, replacing Alan Greenspan. These men and their predecessors are supposed to be very smart with economics. So are their predecessors. If they are so damned smart about economics how is it that they did NOT see this coming? My dad, deceased two years now, saw this coming years ago. Smart as HE was, he was not an economist. Given this question, I suggest that not only did these so called experts see this coming, but they stood by silently and somehow, somewhere have or will profit from it. Which leads me to - Why should we listen to them now?

~This is an "unreviewable bailout", which means there will be no transparency on how the money will be doled out. As a citizen and expected contributor of this bailout, I demand an audit of any monies paid out - bailout or other. Would you want an audit? If there are enough of us, we could organize a class action and get one.

Here's another angle on this mess regarding personal credit and ethics:

Let me get this straight: Nobody broke any laws in foisting this debt on the public. Companies, their shareholders and executives have all been laughing all the way to the bank with their profits and salaries while the debt load of the American public was unethically, but not illegally, pushed to 970 billion.

Now Paulsen and Bernanke want to not only add 700 billion to the 970 billion of Americans' personal debt, they want Congress to give the Fed (Bernanke) FULL regulatory reign over the banking and insurance industries as well as all of Wall Street. If they get this, then you and I will have to bail the country out as well as completely submit to the fiscal vagaries of Bernanke and their
Board of Governors who are made up of the wealthiest people in this country (who have already PROFITED from what has created this mess) and how they run our markets. I, for one, do not want that.

I am contacting my congressman today to urge him to FIND ANOTHER WAY. Our system of Capitalism is gone. Free markets are pretty well gone as well. If you and I do not work to educate ourselves on this nasty web of "spun" lies then our children and grandchildren will have to shoulder all this, soon to be trillions of dollars of debt for generations to come.

For the brilliant and quick cartoon version of all this, go see Mock Paper Scissors


FranIAm said...

Great post PG!

And MPS's cartoon is brilliant, great that you linked to him.

Ruth Hull Chatlien said...

L.J., you would make an awesome lawyer.

I emailed my congressional rep and senators yesterday. This is so dangerous.

Tengrain said...

Thanks for the link!

We need to get the word out that this bail out is another major economic disaster. You wrote a great post - thank you for that.



PS - I was raised by lawyers, and let me echo Ruth: You laid out your brief brilliantly. Consider law school.

Diane said...

There surely won't be any money for social security when the deal is done.