The NY Post confirms my blog post from Saturday that USA was about to see Financial armageddon. However the piece reads as an after-the-fact spin to justify the actions taken than true reality. In any event, still some facts here showing how close the USA was to collapse. And by no means are we secure from it not occurring.
The wording of the proposed bailout has been released, and for unprecedented emergency spending bill, it is very brief. No need to elaborate details, better to just give broad power as section 8 reads "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." Any surprise here? This administration has discovered that the founding fathers where wrong in designing the government with three branches, to create a system of checks and balances. The true path to a successful government is to run the government by Imperial Presidency, and barring law review by the courts or congress. If this occurred in a different country, the US papers would cry power grab, here this will be spun as necessary and warranted.
Further, Henry Paulson is resisting any language that is attached to help the end-consumer, the taxpayer. All the benefit is targeted at corporations. So much for doing this for "the welfare of the taxpayer". Not that I agree with either arguement, but it is an example of the blatant doublespeak occurring.
To add further salt on the wound, Paulson supports foreign banks dumping their debt on the USA. This will be possible due to the language above giving him absolute power. Why stop there? Expand the USA to cover all losses in any business Paulson sees fit. After all, we don't want companies to recognize losses in a capitalist , socialist, or communist society. The USA got everyone covered!
As of now, nothing has passed into law...yet. So there is still time. If you disagree with USA covering debt of corporations in USA and the world, granting full undesputable power to dish out money as one person sees fit, please CONTACT your CONGRESSMAN TODAY! Easiest way is through a web site by clicking here. Alternately, you can find and contact your Senator or Representative .
Otherwise, sit back, relax, the government will pay for the debt incurred today by increasing taxes on your future earnings for decades to come. When the next president raises taxes significantly, remember, that president isn't at fault, we are for allowing it to happen today.
UPDATE: The bailout has been revised to allow bailout of any asset, at discretion. Getting closer to my statement of "cover losses in any business".