Well the “bailout” passed the House today. I knew it would because no one wants to be blamed for ushering in a depression. On the other hand, this bailout may do nothing to prevent an economic calamity; we just don’t know.
Details of this plan that was voted on and signed by the president in a matter of hours are just starting to come out. To make the plan more palatable to more people, the writers of the bill attached more and more “goodies” to the original bill.
It will be interesting to read the “final” version of this “rushed” bill knowing that very little time was spent in examining the pros and cons of the provisions in the bill.
Today some details of TARP (Troubled Asset Relief Program) were made available but even though the document is 451 pages long it does not address or list the steps that are needed to implement this program; the Treasury Department will just play it by ear. Imagine if you were given $700 Billion to use as you saw fit – wow!
Actually the money stipulated in the bill will be doled out in three (3) sections ($250/ $100/$350) with close bipartisan oversight at each step.
The Fed will contract with up to ten (10) asset management firms to operate the program and here, I already see great potential for mismanagement and possible corruption because that is what happens when our government contracts out specific jobs to the private sector. Just look at the millions if not billions of dollars that have disappeared into thin air in Iraq with nothing to show for it.
Certain provisions of TARP make sense; others are not related to the problem at hand at all.
Congressman Domenici added a mandate forcing health insurance providers to cover mental health problems as they do physical problems. Also in the bill are tax incentives for renewable energy programs, extensions of several personal and business tax cuts that were to expire together with an extension of the AMT (alternative minimum tax) relief law.
I did like the provisions to limit CEO golden parachute deals and increase FDIC insurance on bank savings accounts to $250,000 for one year.
Also, the companies that will sell their bad debt to the government will have to issue “warrants” to the Fed, in effect giving the government an equity position in the company. You can see that the lawmakers wanted desperately to have a bill that would not just be a bailout of rich, greedy people that made really bad decisions but an investment where the Fed could actually make money.
Well, I am sorry but I just don’t have any confidence in our government to make this plan really work but hey, lets give the plan a chance…
Details of this plan that was voted on and signed by the president in a matter of hours are just starting to come out. To make the plan more palatable to more people, the writers of the bill attached more and more “goodies” to the original bill.
It will be interesting to read the “final” version of this “rushed” bill knowing that very little time was spent in examining the pros and cons of the provisions in the bill.
Today some details of TARP (Troubled Asset Relief Program) were made available but even though the document is 451 pages long it does not address or list the steps that are needed to implement this program; the Treasury Department will just play it by ear. Imagine if you were given $700 Billion to use as you saw fit – wow!
Actually the money stipulated in the bill will be doled out in three (3) sections ($250/ $100/$350) with close bipartisan oversight at each step.
The Fed will contract with up to ten (10) asset management firms to operate the program and here, I already see great potential for mismanagement and possible corruption because that is what happens when our government contracts out specific jobs to the private sector. Just look at the millions if not billions of dollars that have disappeared into thin air in Iraq with nothing to show for it.
Certain provisions of TARP make sense; others are not related to the problem at hand at all.
Congressman Domenici added a mandate forcing health insurance providers to cover mental health problems as they do physical problems. Also in the bill are tax incentives for renewable energy programs, extensions of several personal and business tax cuts that were to expire together with an extension of the AMT (alternative minimum tax) relief law.
I did like the provisions to limit CEO golden parachute deals and increase FDIC insurance on bank savings accounts to $250,000 for one year.
Also, the companies that will sell their bad debt to the government will have to issue “warrants” to the Fed, in effect giving the government an equity position in the company. You can see that the lawmakers wanted desperately to have a bill that would not just be a bailout of rich, greedy people that made really bad decisions but an investment where the Fed could actually make money.
Well, I am sorry but I just don’t have any confidence in our government to make this plan really work but hey, lets give the plan a chance…
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