Bailout Bait And Switch

Here are several stories that provide some updates for recent economic/bailout news.

First, Hot Air has a great example of what we can expect in terms of fiscal responsibility from the Obama administration and the current crop of Dems (as if we haven't seen enough examples already):

Those of us on Barack Obama mailing lists have wondered why the masters of fundraising haven't stopped pushing for more donations.  After all, Obama won … last week.  Recounts won't affect the substantial victory; this isn't 2000.  Yet we keep getting e-mails, supposedly from people like Michelle Obama, Joe Biden, and especially David Plouffe, telling us that Obama and the DNC desperately need more of our money...

The DNC raised $100 million dollars on top of the $600+ million raised by Obama.  The latter was a record-breaking number, and the DNC's wasn't too bad, either.  Instead of simply spending what they raised, though, Howard Dean took out massive loans that left the Democrats in the red by $15 million.

In government, we call that deficit spending, something Democrats decried during the 2006 elections.  And who gets to pay for all the overspending and fiscal mismanagement?  The contributors who already coughed up record amounts of money for Hope and Change, that's who.  And the new administration will hold the Hope and Change hostage until it gets all of the loose change possible first...

In a way, this is truth in advertising.  The Democrats have given us a clear example of how they will govern for at least the next two years.

It's no secret that Dems are tax-and-spenders; the only thing that has changed in recent years is that the Reps have gotten almost as bad.  Now, with a clear majority of Dem leadership, and with very few Reps standing for fiscal responsibility, you and I are going to get hammered as Washington spends some crazy money in the coming years.  Grab your pocketbooks...

Next, ABC has actually performed a real journalistic accomplishment in questioning whether the federal government has pulled a massive bait and switch on the American people:

This morning Treasury Secretary Henry Paulson addressed a skeptical press about the latest plans for those 700 billion dollars that were appropriated for the "TARP" -- or Troubled Asset Recovery Program. Now Paulson says Treasury won't buy those "Trouble Assets" -- one of the many metamorphoses this program has had in its young life.

In the meantime, care to apply for some TARP money? Turns out there's a five-page, downloadable document to fill in -- if you're interested...here's the link.

And here's ABC's Dan Arnall on whether there has been, as he puts it, a "Great TARP Bait & Switch".

No Troubled Asset Purchases? Then what are they doing with that $700 billion blank check? They are buying bank stock, not troubled assets. We probably shouldn't call it the TARP anymore. Instead, they are focused on a capital purchase plan (CPP) which is the widely reported $250 billion plan to use taxpayer money to purchase a stake in banks. "By October 26th we had $115 billion out the door to eight large institutions," said Paulson. "In Washington that is a land-speed record from announcing a program to getting funds out the door. We now have approved dozens of additional applications, and investments are being made in approved institutions." When we'll get a list of those dozens of additional applicants which will be getting a piece of the $125 billion in remaining taxpayer case remains to be seen. The original CPP participants were told about the program at a closed-door meeting at Treasury and no minutes have been released on what was said during the meeting.

So, is this the biggest bait and switch in American history? There will certainly be critics who say that Paulson and the Bush Administration were disingenuous when they were selling Congress and the American public on the program back in September. And they'd probably be right. Paulson said today, he knew when the bill was signed the purchase of trouble assets wasn't the right solution to the problem. But history will judge Hank & Co. on the effectiveness of their response. If the risks to the financial system remain low, the future doesn't bring bigger bank and financial institution failures, and the recession doesn't get too deep or last too long, then the quick pivot on this plan will probably go unnoticed.

I don't think there's any doubt that this entire bailout process was a horrendous failure of Congressional authority.  Whether it was an intentional bait and switch or not, the bottom line is that the American people are getting screwed.  Personally, I'd like to see someone in Congress stand up and push some legislation that refunds the taxpayers' money.  Clearly, nothing that was promised with this bailout is actually happening, so how about we stop wasting money and put it toward the deficit or some other such useful activity?

For some e-mails from real people associated with the auto industry, go here and here.  Some telling excerpts:

The UAW has handcuffed GM, Ford, and Chrysler with unreasonable and unrealistic burdens. Their balance sheets will never improve until they shed this weight.

Their business practices are not a tax payer problem, but a terrible management problem. It was a noble idea for the Federal Government to lend them $25 billion to help. It is now known 4 X's that amount will not cure the root cause of the problem., but only buy them 4 X's the amount of time.

While renting in Florida in the late 70's my Mom & Dad ran into many auto workers that had been laid off. They bragged about the fact they were getting more money for doing nothing then they were making when they were working.

I used to be a union worker and I couldn't agree more with what the email write had to say about unions keeping labor costs unrealistically high for manufacturers.

This bailout is bad like all the other bailouts, but it has some extra stench because it will literally be bailing out people being paid to do nothing in companies that are poorly run and that will inevitably end up right back in this situation in a short time.  This bailout madness needs to stop, and it needs to start with YOU.  Call your Senators and Rep and tell them how pissed you are that they are flushing away YOUR taxpayer dollars on insanity like this auto bailout.  Tell them that you are going to hold them accountable between now and their next election, and if they have not proven to be a steadfast opponent of fiscal irresponsibility -- including any and all bailouts -- you will vote against them.

This is the only way we can turn this thing around.  It's time to play hardball with these idiots.

There's my two cents.